Distribution Deals Highlight M&A Activity Last Week

​Two distribution deals were made last week, with private equity group Leonard Green & Partners buying SRS Distribution and McKesson acquiring Medical Specialties Distributors. Other deals in the week included Humana teaming with private equity groups to acquire Curo Health Services, Trimble buying Viewpoint, and Square announcing its acquisition of Weebly.

• Humana (NYSE: HUM) is teaming with private equity groups TPG Capital and Welsh, Carson, Anderson, & Stowe to buy Curo Health Services. The $1.4 billion deal will create the largest hospice operator in the US. Curo will merge with the hospice business of Kindred Healthcare, which was acquired by the group in December.

• GPS maker Trimble (NASDAQ: TRMB) announced it would acquire privately held Viewpoint from Bain Capital in an all-cash deal valued at $1.2 billion. Viewpoint, which is an operator of a project management platform for the construction industry, will be part of Trimble’s buildings and infrastructure segment.

• Leonard Green & Partners has agreed to acquire SRS Distribution from Berkshire Partners for more than $3 billion. SRS is a wholesale distributor of building products, which includes nails, screws, gutters, lumber, paint, and other accessories and tools. According to its website, roofing makes up 90% of the company’s sales, and, when Berkshire Partners acquired the company from AEA Investors in 2013, SRS was the fourth-largest residential roofing distributor in the country.

• McKesson Corp. (NYSE: MCK) announced a multi-year strategic growth initiative this past and simultaneously announced it reached a definitive agreement to acquire Medical Specialties Distributors for $800 million. Medical Specialties Distributors is a national distributor of infusion and medical-surgical supplies.
  

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• Square, the company known for its payment software and hardware, announced an agreement to acquire Weebly for $365 million. Weebly provides users with easy-to-create website templates and typically focuses on small businesses and e-commerce businesses. Square noted that, with the acquisition, it can expand globally with 40% of Weebly’s 625,000 paid subscribers outside of the US.