US Specialty Distribution – Q1 2025 State of the Market

M&A activity in the US specialty distribution sector remained active through Q1 2025, with strategic buyers and private equity sponsors driving consolidation despite ongoing macro pressures.

Market snapshot:
• Over the first few months of 2025, more than 60 transactions took place, reflecting continued consolidation and investor interest.
• Family-owned and founder-led businesses remained the primary seller type in the market.
• In Q1 2025, the median EV/EBITDA multiple rose to 13.7x, up from 13.1x in Q4 2024. The highest multiples were seen amongst distributors active in pool, landscape and HVAC supply with a median of 19.9x, while the electronics distribution segment had the lowest median multiple at 8.8x.