Advent Keeps Rolling Up Insulation

Distribution International, a portfolio company of Advent International, has acquired Silvercote LLC and the assets of Silvercote’s Canadian operations (together Silvercote) from Knauf Insulation. Advent acquired a majority equity interest in Distribution International from Audax Private Equity and The CapStreet Group in December 2014 with Audax maintaining a minority equity position.

Silvercote is a laminator and distributor of metal building insulation (MBI) and related products and accessories to metal building manufacturers, specialty contractors and metal building brokers. The company, led by General Manager Joey Viselli, is headquartered in Greenville, SC and has 11 branches located across the US and Canada (www.silvercote.com).

Mr. Viselli will continue with DI post-closing as Senior Vice President and General Manager, Specialty Products. Silvercote’s operations will be combined with DI’s existing MBI business under the Silvercote brand and will continue to be headquartered in Greenville. “Bringing these two organizations together creates the leading MBI company in North America. Our combined business has a branch footprint that is ideally suited to service our growing customer base across North America,” said Mr. Viselli.

Distribution International (DI) is a value-added distributor of insulation, abatement supplies, fire protection products, refractory products, and safety & contractor supplies.  The company has 90 branch locations and serves customers in the commercial building, chemicals, energy, power, railcar and marine end markets.

Most of DI’s sales are derived from ongoing maintenance and repair spending in industrial installations and commercial buildings. The company, led by CEO Steve Margolius, was founded in 1986 and is headquartered in Houston (www.distributionintl.com) (www.crossroadsci.com).

Mergers and acquisitions are an important element of DI’s growth strategy. Since December 2011, DI has completed 22 acquisitions in the insulation market, expanding its geographic presence across the U.S. and Canada and broadening its product and service offerings.

Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. Advent has 14 offices in 12 countries and employs 195 investment professionals across North America, Europe, Latin America and Asia. Earlier this month, Advent completed fundraising for Advent International GPE IX LP at its hard cap of $17.5 billion. The new fund was raised in only six months and exceeded its original target of $16 billion. Advent’s earlier fund closed at its hard cap of $13 billion in March 2016. Advent was founded in 1984 and is headquartered in Boston (www.adventinternational.com).

Knauf Insulation, the seller of Silvercote, is a manufacturer of thermal and acoustical glass mineral wool insulation used in residential, commercial, industrial, OEM and metal building applications. The company, led by CEO Matt Parrish and headquartered near Indianapolis in Shelbyville, IN, is part of the Germany-based Knauf Group, a family-owned, multinational producer of building materials and construction systems (www.knaufinsulation.us).

© 2019 Private Equity Professional | June 12, 2019

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