Specialty Distribution Industry Update Q2 2022

Read more about M&A trends and activity in this sector

Specialty Distribution Sector Update

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Specialty Distribution Overview

Global specialty distribution industry participants include distributors and suppliers of various specialty products and parts covering a variety of end-markets. Key public industry players are categorized by sub-sectors as follows:

Sub-SectorPublic Revenue /
EBITDA Multiple(1)
DescriptionKey Select Industry Leadership
2.18x / 12.4xOmni-channel suppliers of aftermarket parts and accessories
  • AutoZone
  • Dorman Products
  • Genuine Parts Company
  • LKQ Corporation
  • O’ Reilly Automotive
Building Products0.75x / 6.0xSuppliers of products used in residential and commercial construction applications
  • Beacon Roofing Supply
  • Boise Cascade
  • Builders FirstSource
  • CRH
  • Ferguson
  • GMS
  • Hardwoods Distribution
  • SiteOneLandscape Supply
Consumer Products
1.50x / 10.0xDistributors of specialty residential products
  • Central Garden & Pet Company
  • Fortune Brands Home & Security
  • Pool Corporation
Food Service0.43x / 11.9xSuppliers of food and non-food products to restaurants, hospitals, and schools and universities
  • Bunzl
  • Performance Food Group
  • SpartanNash
  • Sysco Corporation
  • United Natural Foods
  • US Foods Holding
0.56x / 10.2xProviders of pharmaceuticals, medical supplies, equipment and devices
  • AdaptHealth
  • AmeriSourceBergen
  • Cardinal Health
  • Henry Schein
  • McKesson
  • Owens & Minor
  • Patterson Companies
Industrial1.31x / 11.6xB2B distributors of products, equipment, and supplies to a range of industrial applications
  • Applied Industrial Technologies
  • DXP Enterprises
  • Fastenal
  • Global Industrial
  • Kaman Corporation
  • L’AirLiquide
  • MRC Global
  • MSC Industrial Direct Co.
  • NOV
  • NOW
  • Rexel
  • SPX Corporation
  • Veritiv Corporation
  • W.W. Grainger
  • Watsco
  • WESCO International
Specialty Chemicals
2.23x / 11.4xSuppliers of smaller volume chemical formulations used in specific applications
  • Air Products and Chemicals
  • Brenntag
  • Hawkins
  • IMCD
  • Linde
  • Univar Solutions

Sector Perspectives: Supply Chain Issues Affecting Specialty Distribution

  • In September 2022, the ISM Manufacturing Supplier Deliveries Index stood at 52.4%, indicating delays and slowdowns in the supply chain, as a result of continued transportation delays and labor shortages
    • This figure measures how quickly shipments are reaching customers. The higher the number, the slower the deliveries
  • To mitigate the impact of supply chain disruption, distributors such as MRC Global, MSC Industrial, and other major industry players are building inventory buffers to cushion the impact of price increases, long lead times, and lack of product availability
  • Further, many distributors have relied on technological initiatives to navigate through continued supply chain issues, by adopting systems for logistics planning, inventory management, and general automation
    • Per Holden Lewis, CFO of Fastenal Company: “Our market place continues to experience tight supply chains and labor shortages. To address these, we will continue to lean on technology and branch initiatives to improve productivity and an organizational culture that empowers local leaders to sustain high service levels.”
  • Supplier relationships have been a critical part of managing challenging supply chain dynamics, with companies maintaining constant communication and securing long term agreements, that foster deeper relations with suppliers to ensure timely deliveries and adequate supply

We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.

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Specialty Distribution Sector Update

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