Affiliated Distributors (AD) and The Commonwealth Group (TCG), both member-owned buying groups serving plumbing, HVAC, and waterworks (PHCP) distributors, announced Tuesday plans to merge, creating one of the largest cooperatives in the U.S. PHCP distribution sector.
The merger, unanimously approved by both boards after months of negotiations and due diligence, is subject to a shareholder vote by TCG members and is expected to close later this year.
Combined, the two organizations represent 325 independently owned PHCP distributors, which will join AD’s broader network of more than 1,000 independent companies across nine construction and industrial verticals and 14 divisions in North America. TCG itself comprises more than 114 independent wholesalers and over 140 manufacturers.
As part of the integration, AD’s U.S. Plumbing and HVAC divisional boards and vendor committees will be restructured to ensure equal representation from both organizations. Its PVF and Decorative Brands divisions will also undergo adjustments, along with TCG’s Waterworks division.
“This merger will significantly strengthen AD and TCG’s PHCP members and partners in the U.S.,” said Colin Perry, TCG board chairman and president of the Rampart division of Cregger Company, Inc. “It combines the best programs and services from both organizations, provides a hedge against industry consolidation, and eliminates redundancies for supplier partners currently working with two separate groups.”
Paul Kennedy, CEO of DSG and representative of AD’s board, said the deal reflects a shared commitment to independent distribution. “Both organizations have a long history of supporting leading independents. Coming together presents a powerful opportunity to further strengthen a channel that suppliers, manufacturer representatives, and customers highly value,” he said.
Under the leadership transition, TCG president Mike Lepley will lead the combined PHCP business unit at AD, reporting directly to chairman and CEO Bill Weisberg. Lepley will succeed Jeffrey Beall, who has led AD’s PHCP operations for 14 years and plans to step down in 2026. Beall will remain as a senior advisor through spring 2026 to support the transition.
Lepley said the merger offers long-term benefits for both members and suppliers. “The opportunities this union provides are limitless,” he said. “By combining the best of each group, we can make our independent distributors and supplier partners even stronger now and in the future.”
Weisberg noted this marks AD’s 17th merger overall and its sixth in the PHCP sector. “These mergers have allowed us to scale value-added programs and services cost-effectively, helping our members and suppliers grow while reinforcing our importance as trusted business partners,” he said.
Howard Rose, former TCG board co-chairman and CEO of The Portland Group, added that the deal builds on long-standing ties between members. “Many of us are already business partners and friends, so we’re excited to formally leverage best practices and new ideas together,” he said.
If approved, the merger will create a combined buying group positioned to counter industry consolidation while preserving the role of independent distributors in the PHCP supply chain.
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