Both US and Global Industrial Distribution M&A volume rose above Q2 2020 levels in Q2 2021. Moreover, YTD 2021 US Industrial Distribution M&A activity increased 91.1% to 150 transactions year-over-year. YTD Global M&A activity far surpassed 2020 levels, increasing 53.6% to 407 transactions.
When comparing quarter-over-quarter, both US and Global Industrial Distribution M&A saw an increase. US levels increased 47.5% vs only 3.5% globally. This surge is likely due to an extreme uptick in consolidation among strategic buyers, as well as owners capitalizing on favorable valuations and the current tax environment.
Manufacturing sector indicators retracted slightly after increasing in Q1 2021. The Institute for Supply Management (“ISM”) New Orders Index slightly decreased to 66.0 in June 2021. The ISM Purchasing Managers’ Index decreased to 60.6, down from 64.7 in March 2021. The ISM Production Index decreased to 60.8 in June 2021. The Industrial Production Index, which measures the real production output of manufacturing, mining, and utilities, increased to 100.1 in June 2021, indicating strong growth for the industrial sector of the economy.
Read Industrial Distributor M&A Pulse Q2 2021 Full Report