Industry Sectors

Chemical and specialty materials manufacturers have historically relied on chemical distributors and logistics providers as important elements of their sales and marketing models. In markets where customers’ ordering patterns are sporadic and small-volume orders are the norm, distributors and logistics companies play a crucial role in ensuring customers receive the products they need on time. Distribution and logistics providers also have robust business models. Diversified distributors can sell a wide range of products to a broad range of customers, fulfill a critical role in supply chains, and can perform exceptionally well during times of market disruptions. 

M&A activity in the supply chain has been strong over the last decade. Large, national distributors have been buying regional firms to bolster their market share and geographic coverage, and private equity groups have been attracted to the fragmented nature of the market. Consolidation has also been occurring internationally. As both their suppliers and customers have migrated overseas, distribution and infrastructure firms have followed and actively sought to acquire their overseas counterparts.