The BGL Industrials Insider -- Industrial Distribution M&A Strong Amid Overall M&A Market Slowdown

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Nov 16, 2023, 17:53 ET

CLEVELAND, Nov. 16, 2023 /PRNewswire/ -- Value-added Industrial Distribution remains resilient despite a lull in the broader M&A market, with major sector sub verticals seeing consistent deal activity, according to a new industry report released by the Industrial Distribution investment banking team from Brown Gibbons Lang & Company (BGL).

Read the BGL Industrials Insider—Industrial Distribution M&A Strong Amid Overall M&A Market Slowdown: https://bit.ly/bglIndustrialDistributionInsider

Value-added Industrial Distribution remains resilient despite a lull in the broader M&A market, with major sector sub verticals seeing consistent deal activity, according to a new industry report released by the Industrial Distribution investment banking team from Brown Gibbons Lang & Company (BGL).

Notwithstanding a mixed macroeconomic environment, industrial distribution companies continue to perform as supply chain disruptions have eased and price increases have moderated.

Acquisitions remain a priority for capital deployment and are an important growth lever for product line and geographic expansion, enabling acquirors to take advantage of enhanced operating leverage and buying power achieved through increased scale.

Capital availability is keeping the industrial distribution M&A pipeline active across the major distribution subsectors as strategic and financial buyers display a robust appetite for new platforms and add-on acquisitions, which has carried through the year.

While lenders remain cautious and borrowing criteria have tightened, lenders are continuing to seek opportunities to deploy capital, and high-quality industrial distribution businesses are viewed as attractive borrowers given their fragmented markets, low capital expenditures, and attractive free cash flow characteristics.

About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has investment banking offices in Chicago, Cleveland, Los Angeles, and New York, and real estate offices in Chicago, Cleveland, and San Antonio. The firm is also a founding member of Global M&A Partners, enabling BGL to service clients in more than 35 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, LLC, an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com.