OpenGate Capital has completed its acquisition of Bois & Matériaux, a French distributor of building materials, from Wolseley.
Bois & Matériaux (B&M) is one of the top three, business-to-business distributors of building materials in France and the second largest in Northern France. B&M distributes building materials to more than 12,000 trade customers in the residential market, evenly split between new-construction and remodeling. The business sells under the Réseau Pro and Panofrance brand names. B&M also operates a single-branch business in Paris which supplies architectural plaster moldings to the Parisian market. The company has approximately €600 million in revenue and 2,500 employees. B&M is headquartered about 200 miles west of Paris in Rennes, France (www.boisetmateriaux.com).
OpenGate acquires non-core divisions of larger corporations that have revenues from $50 million to $1 billion. The EBITDA of the divisions can be negative, break even, or positive. The firm was founded in 2005 and is headquartered in Los Angeles with additional offices in New York, Paris, France and São Paulo (www.opengatecapital.com).
“As we examined the B&M opportunity and saw that it had repositioned itself during the downturn in the French building and construction market, we viewed it as a testament to the long-term viability of the business,” said Sebastien Kiekert Le Moult, the Partner at OpenGate who led the transaction. “As we dug deeper into the business, we quickly recognized there were a lot of levers to create more value through supply chain efficiencies, overhauling business systems, and improving sales programs. This is an opportunity perfectly suited for OpenGate’s investment strategy, and we’re excited to be working with the team at B&M.”
“The acquisition of B&M affirms OpenGate’s position as a trusted partner for corporations pursuing divestitures as part of their larger strategy. That we have a Paris-based team enables OpenGate to move swiftly and efficiently across Europe and enables us to work with sellers on a local-for-local basis,” said Julien Lagrèze, a Paris-based partner at OpenGate.
The buy of Bois & Matériaux is the third transaction announced by OpenGate in the past three months. In January 2016 the firm acquired Power Partners, a maker of power transformers; and earlier this month signed an agreement to acquire the Window & Door division of Royal Building Products, a manufacturer of vinyl window profiles and patio doors, from Axiall Corporation.
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-9-16
