Affiliated Distributors (AD) and The Commonwealth Group (TCG) announced plans Sept. 2 to merge, creating one of the largest cooperatives in the U.S. PHCP sector.
AD and TCG are both major member-owned buying groups serving plumbing, HVAC, and waterworks (PHCP) distributors. The deal underscores a growing focus on digital tools and technology-driven efficiency for independent distributors.
The merger, which both boards unanimously approved after months of negotiations and due diligence, is pending a shareholder vote by TCG members. The companies expect it to close later this year. Together, the organizations represent 325 independently owned PHCP distributors, joining AD’s broader network of more than 1,000 independent companies across nine construction and industrial verticals and 14 divisions in North America. TCG alone counts more than 114 wholesalers and over 140 manufacturers.
Why AD and TCG intend to merge
Executives emphasized that technology will be central to the combined organization. Through the merger, AD plans to integrate TCG’s ecommerce and procurement platforms with its own digital systems, giving members and suppliers improved visibility, analytics, and workflow automation. The aim is to streamline ordering, inventory management, and pricing while reducing redundancies across the supply chain.
“This merger is not just about scale,” said Colin Perry, TCG board chairman and president of the Rampart division of Cregger Company, Inc. “It’s about modernizing how independent distributors operate.”
Under the merger, TCG president Mike Lepley will lead the combined PHCP business unit at AD, reporting to Weisberg. Lepley will succeed Jeffrey Beall, who has led AD’s PHCP operations for 14 years and plans to step down in 2026. Beall will remain as a senior advisor through spring 2026 to support the transition.
Lepley said the merger offers long-term benefits for both members and suppliers.
“By leveraging technology, we can give our independent members the tools to better serve customers, optimize inventory, and respond faster to market demands,” he said.
The deal also includes structural adjustments to ensure equal representation across boards and divisions, including AD’s PVF and Decorative Brands divisions and TCG’s Waterworks division. Executives said these changes will unify operational best practices and accelerate digital workflows.
If approved, the merger will strengthen independent distributors’ position in a market facing significant consolidation.
“This merger is a strategic win for independence and innovation,” said Howard Rose, former TCG board co-chairman and CEO of The Portland Group. “It allows us to combine relationships, knowledge, and technology to strengthen our members’ businesses for years to come.”
By embedding digital solutions at the core of operations, AD and TCG aim to future-proof their network while providing members with tools to grow and compete in a rapidly evolving PHCP market.
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