Brookfield Snags Canadian Industrial Distributor Gregg for $1.6 Billion

Brookfield Asset Management’s private‑equity division announced yesterday that it will purchase Gregg Distributors LP, the Edmonton‑based, family‑run industrial supplier, for an enterprise value of roughly $1.6 billion, debt included. The transaction is slated to close before the year ends.

Gregg was founded back in 1968 and has grown into a catalogue‑heavy distributor that ships everything from power tools, hoses and safety gear to industrial chemicals, first‑aid kits and automotive parts. Its roughly 500 suppliers keep a steady flow of inventory for the about 20,000 customers it serves – a mix of municipalities, construction firms, oil‑field service companies and agricultural outfits scattered across Alberta, Saskatchewan, British Columbia and beyond.

This kind of steady, “need‑to‑have” business fits neatly into Brookfield’s private‑equity playbook. While many firms chase the flashier software space, Brookfield has been double‑down on companies that own tangible assets and generate reliable cash‑flows. In other words, they like businesses that people can’t quit – even when the economy hiccups.

Brookfield isn’t a stranger to the industrial‑distribution world. The $75 billion private‑equity arm already backs U.S. trailer‑parts maker DexKo Global and life‑sciences equipment specialist Antylia Scientific. Its broader platform manages more than $1 trillion in assets across infrastructure, real estate, renewable energy and insurance.

Under the deal, Brookfield will buy out the Gregg family’s stake and a chunk of employee‑held shares, but it isn’t wiping the slate clean. The current senior leadership team, led by Gary Gregg, will stay on board, and the roughly 1,000 employees are expected to keep their jobs.

“A big part of why we like the business is these are products that businesses need on a day‑to‑day basis,” explained Erson Olivan, managing partner at Brookfield. “The client base – from oil‑field services to trucking – creates a reliable revenue stream, and occasional spikes from big projects in the western provinces give us extra upside.” He added that Canada’s renewed focus on energy security – think new LNG plants and pipeline upgrades – could act as a tailwind for Gregg’s sales.

Gary Gregg welcomed the partnership, noting that Brookfield’s operating expertise, deep understanding of the Canadian market and familiarity with Gregg’s customer network make it “the ideal partner for Gregg’s next chapter.” The asset manager, for its part, said it plans no major strategic overhaul, but will look to modernise the go‑to‑market approach and lean more on data and automation to eke out marginal gains.