Buying groups have long been a critical strategic advantage for PHCP-PVF wholesaler-distributors. For independent distributors - many of them family-owned and/or regionally based – buying groups increase purchasing power and provide leverage they could not achieve alone, helping secure more competitive pricing, rebate programs and access to preferred vendor lines. Buying groups have evolved over the decades, now offering marketing support, training resources, networking opportunities and back-office efficiencies.

Much like the enhanced catalog of business services provided, the landscape of buying groups within the PHCP-PVF supply chain has changed over the years.

Throughout the 1970s-1980s there were four main industry buying groups - AD, Embassy, Omni and WIT & Co. Often referred to as "legacy buying groups," these groups existed and operated for decades before consolidation began. A quick history lesson on buying group mergers in the sector:

• In 1996, IMARK Electrical buying group was founded and planted its roots first in the electrical market as a result of several electrical buying group mergers;
• In 2008, a buying group named Equity was formed after the consolidation of several other groups;
• In 2019, Equity and Omni merged into IMARK Electric, creating the group’s official plumbing arm, IMARK Plumbing;
• In 2019, Embassy Group & WIT & Co. sign a letter of intent to merge, and the transaction was completed later that year;
• This move created a new buying group, The Commonwealth Group Ltd., which officially launched on January 1, 2020;
• Also in 2019, IMARK partners with BLUE HAWK, a member-owned HVACR wholesaler, expanding its reach into new verticals.

Since 2020, all three major buying groups – The Commonwealth Group, AD and IMARK, have been expanding into new sectors, growing membership, and enhancing service offerings. The latest significant announcement is one that leaves the PHCP-PVF supply chain with just two primary buying groups.

"You have to move forward in the industry, and this is the right move forward for us"

On September 2, 2025, AD and The Commonwealth Group (TCG) announced their intent to merge. The groups describe the merger as one of two equals that will benefit the PHCP-PVF supply chain and all member owners. Post-merge, 325 independently owned PHCP distributors in the U.S. 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.

During the final TCG Shareholders Meeting in Nashville, a few weeks after the announcement, the merger was undoubtedly the top conversation buzzing through the Grand Hyatt halls. Overall, TCG member response is positive and optimistic, with many of them citing excitement to explore AD’s service offerings, such as the eCommerce services, sales and marketing services and education resources.

"You have to move forward in the industry, and this is the right move forward for us," one longtime TCG member said during the event. "We’ll now be a part of the premier buying group in the industry, which provides new opportunities for us."

It’s natural for change to invoke some hesitation, and some members approach this move with more caution. Even so, they agree that giving it time is the best option. "It’s new to us, so there will be a learning curve and reluctance from some, but you have to give it time and see how it plays out before making any assumptions," another active TCG member said.

One major plus that shareholders pointed out is that TCG members will get to keep their current software.

Both TCG and AD leadership make it clear that the goal is to bring together the best benefits of both groups.

Mike Lepley, president of The Commonwealth Group (TCG) emphasizes that the opportunities this union will provide are infinite. "Getting to know the AD organization through this process has been a great experience," he says. "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 adds that this merger is a true win-win. "We are honored to be joining forces with this highly respected group, their strong members and dedicated associates," he says. "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."

Following the TCG annual shareholders meeting, Lepley pointed out that the consensus among members was one of support and positivity. "We are encouraged by the incredibly strong support that the merger received and the opportunities it creates for members, suppliers, and the entire independent channel. The feedback from both TCG and AD communities has been overwhelmingly positive, and we are eager to bring our combined strengths to benefit all stakeholders."