The industrial distribution market continues to be characterized by relatively stable and predictable revenue streams, limited customer concentration, and strong free cash flow within a fragmented marketplace. Despite the challenges faced over the past 12 months, acquisition activity within the industrial distribution sector has remained strong. Larger distributors continue to merge with competitors and acquire smaller companies that provide complementary product lines to create a “one-stop” shop for customers. Capital markets also continue to be favorable for financial investors looking to acquire a platform or an add-on acquisition for an existing portfolio company in the fragmented sector.
Our Industrial Distribution team remains very active in this space, having recently closed several relevant M&A assignments that benefited from strong strategic and financial buyer demand, resulting in favorable valuations. Read the report for more detail on sector trends, public market performance and deal activity.
