Audax Private Equity has acquired a controlling interest in Colony Hardware. Tailwind acquired Colony from AEA Investors in October 2015. Both Tailwind and the company’s management team are maintaining an equity interest in the business.
Colony Hardware is a route-based specialty distributor of safety equipment, power tools and other small-ticket jobsite essentials to multiple trades of contractors serving the commercial construction and public infrastructure construction markets.
Colony serves over 18,000 customers through its 29 branches in Connecticut, New York, Massachusetts, Rhode Island, New Jersey, Pennsylvania, Maryland, Illinois, Michigan, Ohio, and Florida. The company is led by CEO Michael Weiner and is headquartered in Orange, CT (www.colonyhardware.com).
“Colony is a leader in the consumable construction tools, safety equipment, and jobsite supply market,” said Geoffrey Rehnert, Co-Chief Executive Officer, Audax Group. “We believe the company is poised for growth as it continues to expand its presence throughout the United States. We look forward to supporting Michael and the entire Colony team to continue growing the business organically and through acquisitions.”
Thus far in 2018, Colony has achieved record sales growth and expanded its presence in Florida and the Midwest through five strategic acquisitions. The most recent buys were Ft. Myers, FL-based Brinker Brown Fastener & Supply in May 2018; Rochester, NY-based Cook Iron Store in April 2018; and Lake Worth, FL-based Allied Fastener & Tool in February 2018.
“We are excited to be partnering with Audax for the next stage of our growth,” said Mr. Weiner. “We have always put our customers first, and Audax is committed to investing behind our value proposition and our ability to serve the customer. Audax also brings expertise and resources that will help us continue to build our position in the market through strategic acquisitions and growth initiatives.”
Audax makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. Since founding in 1999, Audax has invested $5 billion in 118 platform and 715 add-on companies. The firm has offices in Boston, New York and San Francisco (www.audaxgroup.com).
Tailwind invests from $25 million to $100 million of equity in middle-market companies that have enterprise values of up to $300 million and EBITDA from $10 million to $30 million. Sectors of interest include healthcare, business services and industrial services. Since its founding in 2003, Tailwind and its portfolio companies have completed over 95 acquisitions. The firm currently manages over $3 billion of committed equity capital and is based in New York (www.tailwind.com).
BB&T Capital Markets was the financial advisor to Colony Hardware and Tailwind Capital.
© 2018 Private Equity Professional | November 15, 2018
