United States, October 4, 2025
News Summary
Two member-owned distributor groups announced a merger that will combine plumbing, heating, cooling and piping operations into a single national PHCP business unit representing 349 independently owned distributors and over $40 billion in combined sales. The deal, approved by both boards and memberships after extensive due diligence, will operate under a divisional structure covering Plumbing, HVAC, PVF, Decorative Brands and Waterworks. Leadership will be shared under a merger-of-equals framework with divisional boards restructured for equal representation. The transaction expands purchasing reach and logistics capacity and is set to become operational early next year.
AD to Merge with The Commonwealth Group; Deal Forms $40B PHCP Network as Industry Consolidation Accelerates
The Commonwealth Group (TCG) and AD have agreed to merge, creating a large network of plumbing, heating, cooling and piping distributors with combined sales that top $40 billion. The merger will bring together 349 independently owned PHCP distributors across the U.S. with total company sales of over $40 billion. The transaction will be completed in the coming weeks and will be operationally effective on January 1, 2026 (per one announcement).
Key details up front
The Commonwealth Group announced that its voting members formally and overwhelmingly approved their Board’s proposal to merge with AD. The Boards of both groups voted unanimously in favor after many months of confidential discussions and extensive due diligence. Terms were not disclosed. Post-merger governance will include a restructured set of divisional boards and vendor committees designed to provide equal representation of AD–TCG membership.
Leadership and structure
Mike Lepley, President of TCG, has been selected as incoming President of AD’s PHCP Business Unit and will report to AD CEO Bill Weisberg. Mike Lepley will succeed Jeffrey Beall, who will serve as a senior advisor before departing AD next spring after 14 years in his position. The combined AD PHCP Business Unit will include AD Divisions for Plumbing, HVAC, PVF (pipe, valves & fittings), Decorative Brands, and Waterworks. AD’s U.S. plumbing and HVAC divisional boards and vendor committees will be restructured to enable equal representation of AD-TCG membership.
Scale, reach and members
The Commonwealth Group has offices in Dallas and Chicago. TCG’s network was cited as spanning 103 distributors comprised of 1,350 branches across the U.S., with combined sales exceeding $9 billion. After the combination, reporting indicates the buying group will result in about 325 independently-owned PHCP distributors within AD’s network of 1,000-plus independent companies spanning nine construction and industrial verticals and 14 divisions in the U.S., Canada and Mexico. AD’s history of member-owned group deals includes 17 mergers in 45 years and six within the PHCP market.
Why this matters now
The merger is an example of wider consolidation happening in the construction and PHCP sectors. Technology and mergers are reshaping how contractors and distributors work. Software tools, drone mapping, and digital project platforms are now as integral to the jobsite as pipe wrenches and soldering torches. Large construction software vendors have been active buyers of specialized software firms, and billions in investment capital have flowed into construction technology. That wave of dealmaking is pushing platforms to cover end-to-end project lifecycles: bidding, estimating, field management, safety compliance, and facility operations.
Practical effects for small and mid-sized contractors
Consolidation can bring practical benefits to small contractors. Integrated platforms can reduce the need to use multiple separate apps by combining time tracking, inventory, scheduling and billing. Bigger companies often supply more training resources, customer support and regular updates than small startups. On the other hand, consolidation can mean paying for bundled features that a small contractor does not need, higher subscription fees if pricing moves to enterprise tiers, and repeated retraining as interfaces change. Fewer independent vendors can also mean reduced competition and slower niche innovation.
Broader M&A and finance context
Deal volume in construction picked up in late 2023 and accelerated through 2024. Investors have large pools of capital available and are focused on specialist contractors with steady backlogs and lower fixed-price risk, such as mechanical, electrical, plumbing and HVAC firms. Private equity roll-ups and platform strategies remain common, and succession planning is a major driver of ownership changes for many owner-operators. ESOPs are also growing in popularity as an ownership transition route in construction.
What to watch next
Operational integration steps and divisional board restructuring will be visible in the coming months as the groups align systems, vendor committees and member services. Companies and contractors that work with AD or TCG should evaluate how pricing, vendor access and service models may change. The deal followed AD’s merger with IMARK Electrical more than a year earlier, and this transaction marks AD’s continued expansion through member-owned group combinations.
Resources and contacts
Location cited for AD corporate contact: 500 E. Swedesford Rd, Wayne, PA 19087. AD contact phone: 610.977.3100; general contact email: [email protected]. ADFoundation.com exists to enable the AD community to support one another’s people when disasters strike. AD’s partner supplyFORCE helps independent distributors secure and jointly service large MRO and Government contracts.
Key takeaways
- The merger will bring together 349 independently owned PHCP distributors across the U.S. with total company sales of over $40 billion.
- The merger will be completed in the coming weeks and will be operationally effective on January 1, 2026 (per one announcement).
- Consolidation and construction technology adoption are enabling integrated platforms that can streamline estimating, dispatch, field tracking and billing for PHCP contractors.
- Small and mid-sized firms should audit tech stacks, prioritize integration, negotiate clear pricing and exit clauses, and invest in training to manage change.
Further context
Construction historically represents roughly 13 percent of global GDP but has lagged in productivity growth. Technology, driven by innovation and consolidation, offers a path to improved productivity. Contractors who approach consolidation thoughtfully will be better positioned to operate, scale, and run sustainable businesses.
Frequently asked questions
What companies are merging?
How large will the combined PHCP network be?
When will the merger take effect?
Where is AD’s corporate contact located?
What are the practical effects of consolidation for small contractors?
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Key features at a glance
| Feature | Detail |
|---|---|
| Merger parties | AD and The Commonwealth Group (TCG) |
| Combined PHCP network size | 349 independently owned PHCP distributors across the U.S. with total company sales of over $40 billion |
| Operational effective date | January 1, 2026 (per one announcement) |
| Incoming PHCP leader | Mike Lepley named incoming President of AD’s PHCP Business Unit |
| TCG purchasing force | 103 distributors / 1,350 branches / $9 billion in sales |
| AD contact | 500 E. Swedesford Rd, Wayne, PA 19087; 610.977.3100; [email protected] |
| Industry context | Consolidation and construction technology adoption reshaping bidding, field management and operations |
| Economic note | Construction historically represents roughly 13 percent of global GDP but has lagged in productivity growth |
Deeper Dive: News & Info About This Topic
Additional Resources
- AD: Commonwealth Group shareholders approve merger
- Wikipedia: Mergers and acquisitions
- MDM: AD to merge with the Commonwealth Group
- Google Search: AD Commonwealth Group merger PHCP
- Construction Briefing: 2025 could be a big year for contractor investment and consolidation
- Encyclopedia Britannica: Construction industry
- StormSkiing: U.S. ski area consolidation explained
- Google News: ski area consolidation
- Politico Pro: If approved, Union Pacific merger could kick off more consolidation
- Google Scholar: rail mergers impact on competition
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
