AGB 2022.5 - SiteOne Landscape Supply (SITE)

Consolidating Distributor in a Fragmented Value Chain

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SiteOne Landscape Supply

There are many similarities between SiteOne and Pool Corp (you can read our write-up here). Both are leading B2B distributors of products for outdoor spaces and connect many different suppliers to professional customers. Even the company’s management thinks of SiteOne as Pool Corp 15-20 years ago, implying that there is still ample runway for consolidation + growth in the industry. After doing the research, we think the key differences between the two companies are (1) SiteOne’s product lines are more diverse, which should result in lower LT margins than Pool Corp, (2) the supplier base is more fragmented in landscape supplies, (3) and SiteOne is much more acquisitive, resulting in a higher reinvestment rate.

SiteOne is the leading wholesale distributor of landscape supplies in the U.S. The company primarily sells its products through its 590 branch locations in over 45 states and 6 Canadian pr…