McNICHOLS CO. builds on family legacy through partnership with One Equity Partners

McNICHOLS CO., one of the nation’s leading suppliers of specialty metals and fiberglass products, has taken a major step forward by entering into a strategic partnership with One Equity Partners (OEP), a private equity firm with a strong track record in middle-market industrials, healthcare, and technology. The announcement, made on October 1, 2025, marks a milestone in the history of McNICHOLS, which has operated for more than seventy years as a family-owned business and steadily built a reputation for its broad catalog of perforated and expanded metals, wire mesh, and grating products. While the terms of the agreement were not disclosed, both companies highlighted the deal as a growth accelerator designed to enhance operational capacity, support expansion across U.S. industrial hubs, and further strengthen customer-focused service. For McNICHOLS, the partnership represents the beginning of a new chapter in which it will combine the resilience of a heritage brand with the resources and strategic expertise of institutional capital.

How does the McNICHOLS and One Equity Partners deal reshape the specialty metals and fiberglass distribution sector?

The U.S. specialty metals distribution industry has always been a fragmented space, with thousands of regional and family-owned suppliers competing against larger players with national scale. McNICHOLS CO., which started in 1952 as a modest venture founded by World War II veteran Robert L. “Bob” McNichols, managed to differentiate itself early by specializing in products that became essential for construction, manufacturing, and energy applications. Its ability to provide perforated metals, fiberglass grating, and custom mesh solutions gave it a unique edge in industries where precision and fast delivery could determine project success. Over time, the company expanded its network to 19 service centers strategically placed across the country, a logistics footprint that has allowed it to serve customers quickly in markets ranging from infrastructure to aerospace.

The new partnership with OEP is not just about additional financial backing; it is also about positioning McNICHOLS to capitalize on long-term trends shaping the distribution sector. Private equity has become a major driver of consolidation in industrials, and OEP’s involvement may help McNICHOLS accelerate acquisitions of smaller competitors or expand into adjacent product categories. With more customers in sectors like renewable energy and advanced manufacturing demanding specialized materials on short timelines, the ability to scale quickly could prove critical. Competitors such as Reliance Steel & Aluminum Co. (NYSE: RS) and Ryerson Holding Corporation (NYSE: RYI), which already enjoy the advantages of scale as public companies, will likely see this deal as a signal that private equity-backed distributors are ready to push into their territory with renewed momentum.

Why does McNICHOLS’ family heritage continue to shape its strategy even after the private equity partnership?

One of the most striking aspects of the OEP partnership is the emphasis on continuity. McNICHOLS has always been more than a business; it has been a reflection of the values instilled by Bob McNichols, who founded the company on Christian principles of service, integrity, and quality. Those values were passed down through multiple generations and embedded into what the company calls its “Hole Team,” a workforce committed to ensuring every customer receives superior service. Even as the company grew to national prominence, it retained the ethos of a family-owned enterprise, where loyalty to both customers and employees played a central role in decision-making.

With OEP now involved, the McNichols family made clear that culture will remain a cornerstone of strategy. Scott McNichols, the third-generation President and CEO, emphasized that the new partnership would help the company grow without compromising the values that have defined it for over seven decades. Meanwhile, longtime leader Gene McNichols stepped into the role of Chairman Emeritus, using the moment to highlight his gratitude for the employees and customers who helped build the brand’s reputation. This blending of family heritage with private equity investment is emblematic of a broader shift in U.S. business culture, where family-run firms seek scale but also strive to safeguard their identities. By keeping the family visibly engaged, McNICHOLS signals to its employees and customers that the OEP deal is not a departure from its legacy but an evolution meant to preserve it for the long term.

What historical trends in metals distribution and private equity activity make this partnership significant?

The specialty metals and fiberglass sector has been undergoing profound transformation for more than a decade. After the 2008 financial crisis, many distributors faced extreme pricing volatility in steel and aluminum, forcing them to streamline operations and focus on efficiency. As infrastructure spending picked up in the 2010s and the U.S. government introduced new funding programs for construction and energy transition projects in the early 2020s, distributors that could supply niche, engineered materials saw their growth accelerate. McNICHOLS’ focus on hole products and fiberglass proved particularly advantageous, as these materials became increasingly vital for renewable energy systems, urban infrastructure, and safety applications.

In parallel, private equity’s interest in the industrials sector surged. Distribution businesses have qualities that make them attractive to investors: recurring demand, opportunities for consolidation, and the potential for improved margins through digitalization and supply chain optimization. Since 2015, industrials have consistently ranked among the most targeted sectors for private equity capital, with firms like KKR, CD&R, and Blackstone placing bets on building materials, safety products, and metal fabrication. Against this backdrop, OEP’s investment in McNICHOLS fits neatly into a larger story of capital-driven consolidation. By aligning with private equity, McNICHOLS gains the chance to expand faster than family financing would normally allow, positioning it to compete more effectively against publicly traded giants while preserving the flexibility of a private company.

How do investors and analysts view the potential impact of OEP’s involvement on McNICHOLS’ growth trajectory?

Although McNICHOLS is not publicly traded, the deal carries implications for investors monitoring industrial distribution stocks. Reliance Steel & Aluminum Co. (NYSE: RS), with annual revenues exceeding $17 billion, has set the bar for scale in metals distribution, while Ryerson Holding Corporation (NYSE: RYI) reported nearly $6 billion in revenues in 2024. Both companies enjoy strong institutional coverage and valuation premiums because of their ability to deliver consistent earnings growth, even in volatile commodity markets. The emergence of a private equity-backed McNICHOLS introduces a new kind of competitor—smaller in absolute scale but potentially more nimble and aggressive in niche product lines.

Analysts believe OEP’s resources will allow McNICHOLS to make strategic investments in logistics software, digital ordering platforms, and inventory optimization tools. Such enhancements could elevate service quality while reducing costs, helping the company strengthen margins in line with larger competitors. For investors, the key takeaway is that private equity continues to see value in distribution, suggesting further consolidation across the sector is likely. Institutional sentiment has generally been positive toward industrial distribution given its defensiveness and exposure to long-term growth markets such as infrastructure and energy transition, and OEP’s bet on McNICHOLS reinforces that trend.

Could this deal spark more M&A activity in the specialty metals and fiberglass space?

The McNICHOLS–OEP partnership may well prove a catalyst for broader merger and acquisition activity in the distribution space. Given McNICHOLS’ well-established brand and operational footprint, private equity backing could allow it to pursue bolt-on acquisitions of smaller regional distributors, quickly expanding geographic coverage and customer reach. Such a move would follow the standard private equity playbook, where platform companies are scaled through targeted add-ons that bring synergies in logistics and product breadth. With a fragmented competitor landscape, there is ample room for McNICHOLS to act as a consolidator, particularly in underserved regional markets or in specialty fiberglass applications where demand is rising.

More broadly, M&A has been accelerating across industrials. Deloitte’s 2024 private equity survey found that nearly 60% of funds expected to increase investment in industrial distribution, citing both resilience and opportunities to digitize traditional supply chains. If McNICHOLS begins to acquire competitors under OEP’s guidance, it could set off a competitive response from rivals, sparking a cycle of consolidation that reshapes pricing power and service models across the industry. For downstream customers, this could mean more reliable supply and broader product offerings, but it could also lead to tighter competition and changing cost structures in project procurement.

Why the McNICHOLS and OEP partnership signals a shift in industrial distribution strategies

The strategic partnership between McNICHOLS CO. and One Equity Partners represents more than just a capital infusion. It illustrates the convergence of legacy and innovation, family heritage and institutional backing, and a shifting industrial landscape increasingly defined by consolidation and technological adoption. McNICHOLS has spent more than seventy years building a business rooted in values and customer service, and now, with OEP’s support, it is preparing to compete at a higher level in an industry where speed, scale, and supply-chain resilience are becoming critical differentiators.

By blending private equity’s appetite for growth with the family’s commitment to culture and quality, McNICHOLS is positioning itself to remain relevant in an evolving sector. Customers can expect to see enhanced service, faster delivery, and potentially broader product offerings, while competitors will be watching closely to gauge how quickly McNICHOLS leverages its new resources. The deal is emblematic of a broader wave of industrial transformation, where heritage firms evolve into platforms for accelerated growth without losing sight of the values that made them successful.