Specialty distribution sector landscape
M&A Activity & Aggregate Deal Value: Q2-19 – Q2-21
- Global aggregate deal value for the specialty distribution sector increased from $3.1bn during Q1-21 to $6.4bn in Q2-21, however the M&A deal volume witnessed a decline of 12.7% over the same period
- In Q2-2021, reported U.S. aggregate M&A deal value totaled $4.6bn relative to $0.7bn reported during Q1-21
- U.S. M&A activity for the specialty distribution sector has increased 5.5% in Q2-2021 compared to Q1-21
- The U.S. accounted for 36.8% of global specialty distribution M&A activity as of Q2-21, up from 30.5% reported in Q1-21
Specialty Distribution Public Company Sector Overview
| Sector | LTM Trading Multiples | Description | |
|---|---|---|---|
| EV / Revenue |
EV / EBITDA |
||
| Automotive | 2.41x | 14.3x | Omni-channel suppliers of aftermarket parts and accessories |
| Building Products | 1.33x | 14.5x | Suppliers of products used in residential and commercial construction applications |
| Consumer Products | 2.73x | 19.6x | Distributors of specialty residential products |
| Food Service | 0.51x | 17.6x | Suppliers of food and non-food products to restaurants, hospitals, and schools and universities |
| Healthcare | 0.93x | 11.9x | Providers of pharmaceuticals, medical supplies, equipment and devices |
| Industrial | 1.80x | 16.6x | B2B distributors of products, equipment, and supplies to a range of industrial applications |
| Specialty Chemicals | 3.20x | 17.7x | Suppliers of smaller volume chemical formulations used in specific applications |
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Footnotes
* The spike in Q4-2020 M&A value is attributed to The Home Depot’s acquisition of HD Supply Holdings, Inc., for $10.3bn. The deal constituted 69.6% of the U.S. aggregate deal value and 52.2% of global deal value in Q4-2020.
