In a move that is expected to positively impact the future of independent PHCP distribution in the United States, AD and The Commonwealth Group announce their intent to merge.

The AD Board of Directors and the TCG Board of Directors are pleased to jointly announce that after many months of confidential discussions and extensive due diligence, both Boards have unanimously voted to merge TCG and AD. The transaction is subject to TCG shareholder approval and is expected to close later this year.

This merger of equals within the U.S. PHCP industry brings together two member-owned groups consisting of 325 independently owned independent PHCP distributors in the U.S. and will be part of the overall AD community of over 1,000 independents spanning nine construction and industrial verticals and fourteen divisions within the U.S., Canada, and Mexico.

As a result of the merger, AD’s U.S. Plumbing and HVAC Divisional Boards and Vendor Committees will be reconstituted to provide for equal representation of membership; AD’s PVF and Decorative Brand Divisions will also be reconstituted to provide representation from both groups as well as TCG’s Waterworks Division.

Colin Perry, TCG Board Chairman and President of the Rampart division of Cregger Company, Inc., commented “We believe this merger will significantly strengthen AD and TCG’s PHCP members and partners in the United States. It will bring together the BEST in both organizations’ programs and services, provide a valuable and effective hedge against consolidation and eliminate significant redundancies for our supplier partners currently working with two separate groups.”

Speaking on behalf of the AD Board of Directors, Paul Kennedy, the CEO of DSG commented, “Both organizations have a rich history of supporting leading independents in this industry. Coming together represents a powerful opportunity for us to further strengthen a channel that suppliers, manufacturer representatives, and customers highly value.”

TCG President Mike Lepley has been selected to lead the overall AD PHCP Business Unit reporting directly to AD’s CEO, Bill Weisberg. Mr. Lepley succeeds Jeffrey Beall who successfully served in this role at AD for the past 14 years and earlier this year announced his decision to depart AD in 2026. Mr. Beall will serve as Senior Advisor at AD through the spring of 2026 to ensure a smooth transition.

Mike Lepley, president of The Commonwealth Group (TCG) shared “The opportunities this union will provide are infinite. Getting to know the AD organization through this process has been a great experience.  The opportunity to combine the very best of each group to collectively make our strong independents and supplier partners even stronger now and into the future is extremely exciting.”

AD Chairman & CEO, Bill Weisberg commented, “We are honored to be joining forces with this highly respected group, their strong members and dedicated associates. This will be AD’s 17th merger and our 6th within the PHCP industry. These mergers have given us the scale to cost-effectively develop and fund value-added programs and services which help our members and suppliers grow, while enhancing our collective importance to suppliers as valued business partners. They truly are win-win.”

Howard Rose, former TCG Board Co-Chairman and CEO of The Portland Group, commented, “The future is bright for independents in the PHCP industry. Many of us are already business partners and friends so we are excited about working together and formally leveraging the power of best practice exchange and new ideas.”