Platinum Equity has completed the acquisition of PrimeSource Building Products from ITOCHU Corporation. PrimeSource is one of the largest distributors of construction fasteners and non-lumber building products in North America. This transaction was first announced by Platinum on March 30, 2015.
PrimeSource Building Products, owned by ITOCHU Group since 1998, has 42 locations across the US and Canada and has carries more than 700,000 SKUs. PrimeSource distributes building products including adhesives and caulks, anchor bolts, builders hardware, collated fasteners and screws, nails, and steel framing. Customers include lumber and building supply dealers, retailers, supply chains, steel fabricators and wholesalers. PrimeSource has 7.1 million sq. ft. of storage capacity across its system (4.1 million square ft. under roof + 3.0 million outside). The company was founded in 1938 as Harbor Plywood. PrimeSource is headquartered in Irving, TX (www.primesourcebp.com).
Jacob Kotzubei, a partner at Platinum Equity, led the transaction. “PrimeSource is one of the leaders in the industry with a global network, strong customer relationships and well recognized brands,” said Mr. Kotzubei. “We believe the company is well positioned for growth, both organically and through add-on acquisitions.”
The PrimeSource transaction represents the third acquisition Platinum Equity has completed in the last three months. The firm acquired Enbi, a manufacturer of print rollers and specialty components, in March from Dutch multinational company Royal Tencate and acquired Chinese manufacturer Ying Shing Enterprises in April. A fourth transaction, the proposed acquisition of Worldwide Flight Services, was announced in April and is expected to close by the end of June.
Platinum Equity invests in a range of industries including information technology, telecommunications, logistics, metals services, manufacturing and distribution. The firm has completed nearly 150 acquisitions with more than $27.5 billion in annual revenue at the time of acquisition. Platinum Equity was founded in 1995 and is based in Beverly Hills with additional offices in New York and London (www.platinumequity.com).
PrimeSource Building Products is led by the company’s co-CEOs David Fishbein and Bob Furio. “This is a terrific opportunity for PrimeSource and all of our stakeholders,” said Mr. Furio. “Working with Platinum Equity will make us even stronger and allow us to take the next step in the evolution of our business.”
2015 PEPD • Private Equity’s Leading News Magazine • 5-11-15