Categories: Business NewsConstructionFinanceNews

January 2025 Sees Decline in Distributor M&A Transactions

Overview of distribution industry mergers and acquisitions in January 2025

News Summary

January 2025 has experienced a slowdown in mergers and acquisitions within the building supply and industrial sectors, with a total of 21 transactions compared to 25 in December. Despite this decline, Kinderhook Industries has been a significant player, acquiring two companies this month. Notable activities included acquisitions by Imperial Dade and Kodiak Building Partners as well. The report indicates a year-over-year drop in M&A activity, signaling potential shifts in the distribution industry as we move further into 2025.

January 2025 Sees Decline in Distributor M&A Transactions but Kinderhook Industries Leads Acquisitions

January 2025 has wrapped up, and while the numbers are in, it looks like there’s been a bit of a slowdown in the world of mergers and acquisitions (M&A) within the building supply, industrial, and commercial hardgoods sectors. A total of 21 M&A transactions took place last month. This marks a drop from December’s 25 deals and November’s more bustling 31 transactions. In fact, compared to January 2024, which had 29 deals, we’ve seen a noticeable year-over-year decline.

To put this in perspective, the year-to-date total for 2024 has reached an impressive 346 transactions, averaging about 28.8 deals per month. Interestingly, this average is better than the 2023 stats, which boasted a total of 304 deals with an average of 25.3 per month. It seems like there’s a bit of a rollercoaster effect happening in the distribution industry!

Kinderhook Industries Takes the Stage

Amidst this backdrop, Kinderhook Industries has emerged as a major player in January’s M&A activity, showcasing its ambition in the market. The investment firm kicked off the month by acquiring the Jack Doheny Companies located in Northville, MI, on January 7. This significant move was quickly followed by another acquisition at the end of the month, this time scoring US Anchors from Norwalk, CT, on January 30. These acquisitions are a noteworthy addition to Kinderhook’s impressive portfolio, marking its 143rd acquisition in environmental and industrial services, and its 31st in light manufacturing and automotive platforms.

It wasn’t just Kinderhook making waves this month. Several other companies also got in on the action. Imperial Dade, another key player, announced its own acquisition during January, while Kodiak Building Partners also made a deal to strengthen its position in the industry.

Notable Acquisitions Fill the Landscape

Here’s a quick rundown of some other fascinating acquisitions that transpired in January:

FleetPride acquired ARS Truck & Fleet Service.
Motion agreed to bring in Maguire Bearing Company.
Hills Distribution collaborated with Coastal Supply Group and RJ Murray Company.
Imperial Dade welcomed S. Freedman & Sons to its family.
TEC Services received a financial boost from Braemont Capital.
Fusion Capital Partners acquired Tavoron.
Rensa Filtration took over Air Filtration Company.
Belt Power secured U.S. assets of Sparks Belting Company.
Kodiak Building Partners acquired Kendell Lumber.
Novvia Group, with backing from Kelso & Company, is set to acquire Saxco International.
Birmingham Fastener joined forces with Anchor Bolt & Supply.
AFC Industries welcomed Irwin Industrial into the fold.
Tencarva Machinery took over Detroit Pump & Mfg. Co.
TricorBraun is planning to acquire Euroglas and Glaspack.
Kinderhook Industries nabbed a specialty equipment rentals distributor, JDC.
Palmdale Oil acquired Combs Oil Company.
R&S Industrial Supplies took over SASCO.
Centro brought in LECORP.
Antifriction Components acquired Scots Bearings.

While the January report may not highlight every acquisition that took place, it does shine a light on the significant activity making waves in the distribution sector. As we move forward into 2025, only time will tell how these changes will shape the landscape!