We are also invested in SiteOne Landscape Supply, Inc. (NYSE:SITE), the largest wholesale distributor of landscape supplies in the U.S. The company operates a network of 477 branches in 44 states, offering a broad selection of products, including irrigation equipment, fertilizer, nursery goods, hardscapes and outdoor lighting. SiteOne is the market leader in an attractive industry with exposure to an improving market, and is also benefiting as increasing numbers of home owners treat outdoor space as an extension of their living space, with increasing investment in patios, decks and yards. The company is experiencing accelerated growth, yet with less than 10% of a fragmented market, we see significant potential for consolidation opportunities and accretive deals.
Internationally, we favor distributors that we think are positioned to leverage the increasing globalization of the supply and distribution chain to their benefit. As this chain expands across countries and even continents, superior handling of the logistics can provide a key competitive advantage.
From Baron Funds' Second Quarter Insight: Finding Growth in Industrials.
