Monomoy Capital Partners has created a new platform, Construction Resources, to acquire two companies – Construction Resources, Inc. and Builder Specialties, Inc. Both companies are value-added building products distributors to home builders in the Southeast region of the United States. Monomoy acquired the companies through its second fund, Monomoy Capital Partners II, LP.
Builder Specialties, Inc. is a distributor and installer of appliances, garage doors, hearth products and lighting products. The company operates 11 distribution centers, design centers and showrooms in greater Atlanta, the Florida panhandle and South Florida. Construction Resources, Inc. is a fabricator, distributor and installer of countertops, glass products, flooring products and cabinets. The company operates 19 distribution centers, design centers and showrooms in Georgia, Florida, South Carolina and Alabama.
As a combined business Construction Resources will have annual sales of approximately $200 million and will provide a full portfolio of home products and installation services to national home builders, regional home builders and general contractors throughout the Southeast. The company has 700 employees and is headquartered in Decatur, GA (www.crhomeusa.com) (www.builderspecialties.net).
“We are excited to welcome Construction Resources to the Monomoy portfolio,” said Justin Hillenbrand, a partner and Co-Executive Officer at Monomoy. “We look forward to working with the company’s management team to integrate the two businesses and to improve customer service, product quality and geographical reach.”
Monomoy acquired the businesses from their owner operators and are presently active working with management to integrate the two acquisitions. Mitch Hires and David Haun, the owner-operators of the two underlying businesses, are investing in the combined company and will serve as the Chief Executive Officer and President of Construction Resources going forward.
“We see a significant opportunity to expand and grow our business as the housing market continues to improve, particularly in greater Atlanta and surrounding regions,” said Mr. Hires. “Monomoy brings Construction Resources a unique combination of financial and operational capabilities, and we are convinced that the Monomoy team is the right partner to help take Construction Resources to the next level of excellence for our customers, suppliers and employees.”
Monomoy Capital Partners makes control investments in middle market businesses with $50 million to $500 million in annual sales. Sectors of interest include manufacturing, distribution, consumer product and foodservice industries. Over the past ten years, Monomoy has acquired over 40 middle market companies from a variety of sellers (including family owners, public companies, lenders and financial sponsors) in a wide range of special situations (including bankruptcy, asset sales, equity sales and restructurings). The firm was founded in 2005 and is headquartered in New York (www.mcpfunds.com).
Bank of America and LBC Credit Partners (www.lbccredit.com) provided financing for the transaction. Mike Sullivan – a Partner in Grant Thornton’s Transaction Advisory Services group – provided financial and accounting due diligence (www.grantthornton.com). Garry Jaunal and Edward West from Baker & McKenzie (www.bakermckenzie.com) provided Monomoy with legal counsel.
© 2016 PEPD • Private Equity’s Leading News Magazine • 1-6-16