Leading Ridge Capital Partners has sold Rugby Architectural Building Products to publicly-traded Hardwoods Distribution.
Rugby Architectural Building Products (Rugby) is a wholesale distributor of non‐structural architectural grade building products sold to customers that supply end‐products used in the commercial, industrial, retail, residential and institutional markets. Products include hardwood lumber and moulding; composite panels; plywood; decorative laminates; stainless steel sinks and faucets; cabinet hardware; adhesives; coatings; door hardware; exterior and interior doors; and door jambs, frames and moulding. Rugby has approximately $300 million in annual revenues and 560 employees. The company is led by CEO David Hughes and COO Drew Dickinson, and is headquartered in Concord, NH with 30 additional facilities in 35 states (www.rugbyabp.com).
Leading Ridge Capital Partners is a private equity firm specializing in acquisitions, recapitalizations, and investments in lower-middle market value-added distribution, niche manufacturing and assembly, business services and asset-light logistics companies that have revenues between $10 million and $50 million. Target companies will have an EBITDA from $1 million to $5 million and will be located, generally, in the Mid-Atlantic region of the US. Leading Ridge Capital Partners has offices in Rockville, MD and New York (www.leadingridge.com).
Leading Ridge was founded in 2009 by Warren Coopersmith, Zach Coopersmith and Robert Mayn. The firm made an equity investment in Rugby in August 2011 to support Mr. Hughes and Mr. Dickinson in expanding Rugby’s capabilities, both organically and via acquisition. During this period Rugby grew its sales and EBITDA which resulted in a strong return on equity for its shareholders.
“I first met Zach Coopersmith and Robert Mayn in late 2009, and since then we have grown our sales nearly four times, expanded our team from 145 to 560 employees, and increased our geographic footprint from 11 to 31 locations,” said CEO David Hughes. “Zach has been instrumental in sourcing and structuring the majority of our 16 acquisitions and Robert has worn numerous financial hats to assist in our growth. Our team has enjoyed not only a strong business partnership but also an enjoyable personal friendship with Zach and Robert, who have always prioritized the success of our team and company first and foremost.”
“Today is truly an exciting day for everyone involved in the tremendous growth and success of Rugby over the last several years,” said Mr. Mayn. “We are very fortunate to have built a wonderful partnership with David and Drew, and to have been a part of the talented team and industry‐leading company they have built.”
Hardwoods Distribution (TSX: HWD), the buyer of Rugby, distributes hardwood lumber, sheet goods, and specialty wood products in the United States and Canada. The company has annual revenue of approximately $600 million and has 32 distribution facilities in Canada and the US. The company is headquartered near Vancouver in Langley, BC (www.hardwoods-inc.com).
KeyBanc Capital Markets served as the financial advisor to Rugby and Holland & Knight served as legal counsel.
© 2016 Private Equity Professional • 7-19-16
