The distributor acquisition market has been slow this year. Coming into this year, since 2021, the start of COVID, there had been about 130 distributors acquired, or a little more than 30 per year. This year … a few in the first half, pretty much zero since.

While there is still time for some deals to be announced, there isn’t much “noise.” We heard of activity over the summer and into early fall. Maybe those deals will be announced. Maybe they fell through

What does this portend for acquisitions in 2026?

With interest rates declining, the outlook for the contractor market flat, industrial being strong, national chains still having geographic holes, there are opportunities.

Leading independents that have a growth horizon continue to seek “fill-ins” at “the right price” whereas nationals typically seek platforms in new geographic areas.

A New Entrant

Last month a potential new entrant joined the industry, albeit in a niche segment – automation.

According to a posting on LinkedIn, SixSibs Capital launched an acquisition platform they’ve called Heritage Automation Partners.

This is a joint venture with a family investment office from the White Family, which owns the industrial equipment manufacturer Rite-Hite.

SixSibs is a family-owned investment company based in Milwaukee.

The company is being led by a former Eaton and Wesco OEM leader, Todd Boone. Boone has also run a couple of PE-backed automation distribution platforms,

Heritage’s Focus

While many PE firms inevitably have a goal of selling the business within a 3–7-year window, according to Heritage’s press release their mission is “To preserve and empower legacy automation businesses … under a shared platform for sustainable growth.” They are seeking to “grow and build” and “honoring what founders have built.”

They are targeting a potential growth segment due to foreseeable industrial dynamics which will drive this business, coupled with advances in robotics, and companies seeking value-added services from skilled personnel with automation knowledge.

Acquisition Targets

When many think “automation” they first think of a Rockwell distributor. It is very doubtful that Heritage would pursue independent Rockwell distributors as they seemingly desire “pure-play” companies.

From a “pure-play” viewpoint this seems to be more aligned with “AHTD-type” distributors.

Are they seeking geographic dispersion or concentration? Market segment focus or generalists? Distributors with a common anchor line or an array of companies that will operate independently but with shared services (back-office type of things.)

Over the past couple of years, I’ve had consulting calls with investment firms that have asked about investing in the business. I ask, “how much” and “what’s the goal.” In some instances, I’ve shared that this could be a targeted niche, especially given that there are many small to medium-sized automation companies that will have generational issues, and ownership will need to monetize their asset at some point.

Heritage could be a way.

In the words of a commenter to the post, this could be an “exciting” development to watch.