The wisdom to leverage our expertise.
Carborundum Abrasives –
Since then, there have been hundreds of acquisitions in the safety business, according to some reports.
Airgas is one of the largest gases and welding equipment companies in the world. But it also has a safety division, which has greatly
increased its abilities to sell complementary products.
DXP Enterprises, which started in business many years ago as a
pump distributor, has added safety products to its existing lines.
DXP has been one of the major acquirers in the distribution sector,
buying some 18 companies in the past four years. And the company, through acquisition, has broadened its lines to include products
such as bearings and other power transmission components.
HD Supply’s facilities maintenance unit, which includes safety
supplies and a number of other products such as plumbing, saw
that group’s sales grow several percentage points last quarter.
One of HD Supply’s key strategies for growth is similar to what
these other distributors are doing: selling more products to existing
customers while also continuing to look for additional customers.
Kaman has been successfully following that strategy through several new acquisitions and partnerships in the industrial automation,
fluid power, hose, and electrical segments.
The pace of acquisitions is expected to pick up this year, both
among industrial manufacturers and distributors. The executives
of several large distributors say they have a pipeline of potential
distributors for acquisition.
MSC Chief Executive Officer Erik Gershwind told financial analysts
that we are in the early stages of an industry consolidation and
that MSC, now that it has successfully integrated BDNA, will be one
of the major players in the M&A game. He points out that with its
scope, size, and financial capabilities, MSC will continue to grow.
He’s not alone. Grainger CEO Jim Ryan has also said the industry is
in an early phase of consolidation.
It will be interesting to see if M&A activity continues to grow as it
has the past few years. All indications are that it will.
By the way: if you haven’t checked out our Big 50 video, it can be
found on our website at: www.inddist.com/2014Big50
Jack Keough is contributing editor of Industrial Distribution. He can
be reached at John.Keough@comcast.net.