2025 Jan-June Electrical Distribution Acquisitions

The electrical acquisition market has been relatively quiet the first half of 2025 with only 11 deals reported / known, and only two of them by a national chain.

Channel Marketing Group tracks electrical distribution acquisitions and, since 2020, there have been 125 deals announced totaling approximately $11.5 billion.

While the assumption is that most companies sell to national chains, that would be an erroneous assumption. More are sold to other independents. The perception is driven by the fact that the chains acquirer the larger companies. If they acquire a smaller company, it is typically to either fill a hole in their map, to diversify their portfolio, or to generate more volume for an RDC / CDC.

The 2025 first half acquisitions, with their acquirer, are:

• Swift – USESI / Monarch
• Laser Electric – Hein Electric Supply
• Schwing – Rexel
• Warshauer – Rexel
• Northport – Wiseway
• Inline – made 2, or 3 (3^rd may be pending) small acquisitions … Tennessee, Florida Panhandle and I believe in Decatur, AL.
  • Lee Electric Supply (Gallatin, TN)
  • Have also opened some new locations
• Meister Electric – Power Electric Supply
• Brozelco – Galco
• Indiana Lighting Center – Gross Electric
• United Lighting & Supply – Winsupply

Other than Rexel, nationals are quiet. Mid-sized distributors are acquiring smaller companies. Consider this “generational consolidation”, or the end of the Baby Boomer generation is selling unless they have a succession plan or are an ESOP.

In looking to the second half of the year, with the tariff issue becoming more settled, interest rates being expected to be reduced (which could stimulate some construction activity), longer-term future outlook for industrial (and this changes geographically and by market sector), continued need to invest, or at least be aware of, technology changes, and the generational evolution, I expect the mid-small acquisitions to continue. There are some companies in the $50-200M range that will most likely seek exists due to lack of succession plans. Smaller companies will be absorbed by mid-sized companies ($100-500M) that seek affordable expansion.

And for a sense of the seismic change, look at this year’s EW Top 100 and notice the number of “new” companies at the bottom of the list (and how “low”, dollar-wise, the list goes!) as well as EW’s Electrical Pyramid that notes that NAED has an estimated 284 electrical distributor members.

Some other notable moves include:

• City Electric continues its new branch strategy throughout the country. At last report they had almost 700 branch locations and are on-track to open about 25 locations, maybe more, this year.
• Lonestar Electric Supply entered into the Nashville market.
• Eckart Supply moved into Cincinnati, opening a location in Blue Ash, KY, that was pre-staffed with local, experienced, salespeople.

What other distributors have opened a location, expanded into a new territory, or made a major move?

CMG has a report that aggregates acquisitions since 2020. The report, which includes the acquisition, who sold to, and the estimated revenue that was accrued to the acquired, by year, is available for purchase and will be available after August 15th. It is available as a one-time purchase or annual subscription. For more information, contact me.