KPS Capital Partners has agreed to acquire Oldcastle BuildingEnvelope, a manufacturer and distributor of architectural hardware, glass and glazing systems, from CRH for $3.45 billion in cash.
Oldcastle BuildingEnvelope (OBE) is a manufacturer, fabricator, and distributor of window and framing products used in residential and commercial construction. The company’s products include architectural glass, skylights, blast and hurricane resistant windows, barriers and shields, and security glazing systems that are used in projects ranging from storefronts and building entrances to shower enclosures and skylights.
In addition to its glass products, OBE also distributes branded hardware and glazing supplies through its subsidiary C.R. Laurence. Dallas-headquartered OBE, led by President Liz Haggerty, employs over 6,700 employees across 84 manufacturing and distribution facilities in five countries.
In FY 2020, OBE had an adjusted EBITDA of $337 million which yields an enterprise valuation multiple of 10.2x.
“KPS’ experience with manufacturing businesses and the significant capital resources available will allow us to invest in our commercial and operational growth strategy,” said Ms. Haggerty. “We intend to expand our capabilities as a customer-oriented solutions provider in architectural hardware, glass and glazing markets. We are excited about OBE’s future opportunities, and we have found a great partner in KPS to capture them.”
“We are thrilled to acquire North America’s largest provider of architectural hardware, glass and glazing systems,” said Raquel Palmer, a co-managing partner of KPS. “We intend to drive profitable growth by providing the company with the financial resources to invest in commercial and operational excellence. We will leverage KPS’ decades of manufacturing expertise to create an entrepreneurial culture centered on innovation, continuous improvement and excellent customer experience.”
CRH (Cement Roadstone Holdings) was formed through the 1970 merger of Cement Limited (founded in 1936) and Roadstone Limited (founded in 1949). Today, the company is one of the largest distributors of building materials in North America and Europe with revenues in 2021 of €31 billion. The company’s products include cement, aggregates, concrete, precast concrete products, glass and glazing systems, and fencing. CRH is headquartered in Dublin, Ireland and has more than 77,000 employees at 3,100 locations in 29 countries.
KPS makes control investments in manufacturing and industrial companies across a range of industries, including basic materials, branded consumer, healthcare, automotive parts, capital equipment, and general manufacturing. Many of KPS’s investments involve creating new companies to buy underperforming or distressed assets, companies operating in bankruptcy or in default of obligations to creditors, or with a history of recurring operating losses.
In October 2019, KPS closed both KPS Special Situations Fund V LP at $6 billion in committed capital and KPS Special Situations Mid-Cap Fund LP at $1 billion in committed capital. Both funds were raised in just four weeks and closed above their initial targets. KPS is headquartered in New York City with additional offices in Frankfurt and Amsterdam.
BofA Securities and J.P. Morgan are the financial advisors to CRH.
The buy of OBE by KPS is expected to close by the end of July 2022.
© 2022 Private Equity Professional | March 10, 2022
Valesco Industries has acquired TopDown, a provider of branded automotive aftermarket products, from River Associates.
Chattanooga, Tennessee-based 
Publicly traded Intertape Polymer Group has agreed to be acquired by Clearlake Capital Group in an all-cash transaction valued at approximately $2.6 billion.
“We believe this transaction is a great next step in the evolution of our business as Clearlake has strong industry knowledge in the protective packaging and e-commerce ecosystems,” said Mr. Yull. “Clearlake provides us the operational and financial resources to accelerate our acquisition strategy, as well as organic growth opportunities such as investing in product innovation, sustainability, and market expansion.”
“We have a long-standing respect and admiration for Greg and his team as they have built on Intertape’s position as a key packaging and protective solutions provider to a diverse set of attractive and growing end-markets,” said José Feliciano, a co-founder and managing partner at Clearlake. “We believe Intertape’s customer-centric and sustainability-oriented approach and capabilities position the company well to capitalize on growth within its target end markets, and the addition of Intertape to our portfolio highlights our thesis that long-term consumer trends favor providers focused on sustainability and innovation.”
Clearlake invests in industrials and energy, software and technology-enabled services, and consumer sectors. The firm was co-founded by Mr. Feliciano and Behdad Eghbali in 2006 and is headquartered in Santa Monica, California with an additional office in Dallas, Texas. In April 2020, Clearlake held a hard cap and oversubscribed final close of its sixth private equity fund, Clearlake Capital Partners VI LP, with more than $7 billion in commitments.
Nautic Partners has agreed to acquire Vallen Distribution from the Sonepar Group.
“This partnership with Nautic marks an exciting new chapter for Vallen, with a focus on accelerating performance while continuing to provide our customers the excellent service, solutions, and products they expect,” said Mr. Delph. “We are eager to move forward with Nautic’s support enhancing our strong relationships with customers, suppliers, and our Vallen team.”
Providence, Rhode Island-headquartered