Specialty distribution sector landscape
M&A Activity & Aggregate Deal Value: Q3-19 – Q3-21
- Global aggregate deal value for the Specialty Distribution sector increased 5.9% to $7.1bn in Q3-21, relative to Q2-21
- During the quarter, reported U.S. aggregate M&A deal value totaled $2.6bn, down from 4.9bn(2) reported in the second quarter of 2021
- U.S. M&A activity for the Specialty Distribution sector witnessed a slight decline of 0.9% in Q3-21 on a quarter-over-quarter basis, while global M&A declined 10.1%
- The U.S. accounted for 40.8% of total M&A activity in Q3-21, up from 37.0% reported in Q2-21
- While commenting on the current supply chain disruptions, Jerome H. Powell, the Fed’s chair said: “It is frustrating to see the bottlenecks and supply chain problems not getting better — in fact, at the margin, apparently getting a little bit worse… We see that continuing into next year, probably, and holding inflation up longer than we had thought.”
Specialty distribution public company sector overview
|LTM Trading Multiples
|Omni-channel suppliers of aftermarket parts and accessories
|Suppliers of products used in residential and commercial construction applications
|Distributors of specialty residential products
|Suppliers of food and non-food products to restaurants, hospitals, and schools and universities
|Providers of pharmaceuticals, medical supplies, equipment and devices
|Suppliers of smaller volume chemical formulations used in specific applications
|B2B distributors of products, equipment, and supplies to a range of industrial applications
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1. The spike in Q4-20 M&A aggregate deal 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 52.0% of global deal value in Q4-20.
2. In May 2021, Performance Food Group Company acquired Core-Mark Holding, for $2.7bn, representing 55.1% of the U.S. aggregate deal value and 40.3% of aggregate global deal value in Q2-21.