Why This Matters to Distributors: A series of new transactions is reshaping several distribution markets. RelaDyne has entered Colombia through an acquisition, ABC Supply has expanded in South Texas, BDI has secured private equity backing for additional growth, and bankrupt BFG Supply has begun marketing assets from a distribution network that served more than 10,000 customers.
Distributors across several sectors announced acquisitions, investments and restructuring moves Aug. 25, with activity spanning industrial supplies, lubricants, building products, electrical distribution and specialty access products.
Among the biggest developments, RelaDyne entered Colombia by acquiring lubricants distributor OilRed, while ABC Supply acquired a nearly 70-year-old masonry and building products distributor in South Texas. Bearing Distributors Inc. received an investment from private equity firm Kelso & Co. that is expected to support additional acquisitions and internal expansion.
Meanwhile, BFG Supply’s Chapter 11 restructuring moved into an asset-sale process covering inventory and other assets from a business that operated 17 warehouse and manufacturing locations.
Top Highlights
- RelaDyne enters Colombia with the acquisition of Chevron lubricants distributor OilRed.
- ABC Supply expands in South Texas by acquiring the assets of Martini Brick Sales in Corpus Christi.
- BFG Supply begins selling assets as part of its Chapter 11 restructuring while continuing to seek a buyer for all or part of the company.
- BDI receives an investment from Kelso & Co. to support internal expansion and acquisition-driven growth.
- Overhead Door acquires Motion Access, expanding its automatic pedestrian door aftermarket and service business.
- Westburne expands technical capabilities in automation, electric vehicle infrastructure and other areas as the Canadian electrical distributor marks its 100th anniversary.
RelaDyne Enters Colombia with OilRed Acquisition
RelaDyne has acquired OilRed, a Chevron lubricants distributor based in Medellín, giving the Houston-based company an operating presence in Colombia.
OilRed distributes lubricants, greases and coolants and provides lubrication programs to automotive, commercial and industrial customers in authorized territories across Colombia.
The acquisition expands RelaDyne’s Latin American business, Grupo Lucalza, which now operates across Mexico, Guatemala, Nicaragua, Panama, Jamaica, the Dominican Republic and Colombia.
OilRed’s existing management team will remain in place.
RelaDyne has grown to more than 190 locations since it was formed in 2010 through the merger of four companies. The distributor supplies lubricants, fuel and diesel exhaust fluid and provides industrial reliability services.
Financial terms of the OilRed transaction were not disclosed.
ABC Supply Acquires Martini Brick Sales
ABC Supply has acquired the assets of Martini Brick Sales, a Corpus Christi, Texas-based masonry and building products distributor founded in 1957.
Martini distributes brick, block, stone, milled stone, faux stone, cast stone, anchorage and drainage products, angle iron and fireplace construction components.
The company will continue operating under the Martini Brick Sales name and will retain its employees. Its current leader will remain with the business as a business development manager, according to ABC Supply.
The transaction expands ABC Supply’s presence in South Texas while adding a business with established relationships among contractors and builders in the Corpus Christi market.
Financial terms were not disclosed.
BFG Supply Moves into Asset-Sale Process
BFG Supply’s Chapter 11 restructuring moved into a new phase on Aug. 25 as court-approved advisers began marketing the distributor’s inventory and certain other assets.
SB360 Capital Partners and Tiger Group received approval from the U.S. Bankruptcy Court for the District of Delaware to market and sell the assets.
BFG operated 17 warehouse and manufacturing locations totaling more than 1.5 million square feet and supplied more than 10,000 customers. The distributor sourced more than 100,000 products from approximately 1,000 vendors.
Its assortment includes lawn and garden products, greenhouse and nursery supplies, irrigation products, fertilizers, tools, crop protection products, outdoor living merchandise and controlled-environment agriculture products.
The company is also seeking buyers for all or portions of BFG as a going concern. SSG has been retained to solicit potential buyers.
BFG, founded in 1972, filed for Chapter 11 bankruptcy protection earlier this month.
Kelso Invests in BDI
Bearing Distributors Inc. received an investment from private equity firm Kelso & Co. that will provide the industrial distributor with additional capital for expansion and acquisitions.
Financial terms and the size of Kelso’s ownership stake were not disclosed.
Cleveland-based BDI distributes bearings, power transmission and fluid power products and related industrial solutions. The company operates in more than 205 locations across 11 countries.
BDI said the investment will support expansion across product categories, end markets and services as well as acquisitions.
The company’s existing leadership team will remain in place and retain an ownership stake following the transaction.
The deal puts additional acquisition capital behind one of the larger power transmission and bearings distributors in the market and makes BDI a company to watch for follow-on transactions.
Overhead Door Acquires Motion Access
Overhead Door Corp. has acquired the business and operating assets of Motion Access LLC, an Elk Grove Village, Illinois-based supplier of automatic pedestrian door products and aftermarket solutions.
The asset purchase agreement was completed Aug. 24 and announced publicly Aug. 25.
Founded in 2004, Motion Access develops and supplies automatic pedestrian door operators, replacement parts, retrofit products and rebuilt equipment.
Motion Access will continue operating under its existing name as part of Horton Automatics, an Overhead Door business.
The acquisition expands Overhead Door’s aftermarket and service capabilities in automatic entrance systems.
Horton Pedestrian Access Solutions works with more than 200 distribution partners across North America. Overhead Door’s broader business serves more than 4,500 professional distribution partners.
Overhead Door is a subsidiary of Tokyo-based Sanwa Holdings Corp.
Westburne Expands Beyond Traditional Electrical Distribution
Westburne is expanding its technical capabilities in industrial automation, electric vehicle infrastructure, energy-efficient technologies and connected network solutions as the Canadian electrical distributor marks its 100th anniversary.
The Aug. 25 announcement also included a $60,000 investment in 12 skilled-trades scholarships across Quebec, Alberta and Ontario.
Founded in 1926, Westburne has grown from a single location in Turner Valley, Alberta, to more than 100 branches and more than 1,000 employees across Canada.
The company supplies industrial, commercial and institutional customers with electrical products and provides technical expertise in power distribution, lighting and controls, industrial automation and network solutions.
Westburne is part of Rexel Group, the global electrical distribution company.
The company’s expansion of technical services reflects a broader move among electrical and industrial distributors to build businesses around engineering, automation and technical support in addition to product sales.
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