building materials

H.I.G. Keeps Building ACG Materials

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ACG Materials, a portfolio company of H.I.G. Capital, has acquired Kitsap Reclamation and Materials.

Kitsap is a miner and processor of aggregate products that are used in infrastructure, building products and landscaping applications. The company, founded in 1993, operates a basalt quarry in Bremerton, WA.

ACG Materials is a diversified minerals miner and processor with 21 mines, 4 downstream processing facilities and over 500 million tons of reserves across Oklahoma, Texas, Florida, Kansas, Missouri, Nevada, Washington, and British Columbia. The company supplies varying grades of gypsum, anhydrite, limestone, caliche, sand & gravel, and aggregate products that serve industries such as building products (wallboard, plasters, decorative home goods), agriculture (fertilizer), infrastructure (roads, bridges), oil & gas (roads and well pads) and food & pharmaceuticals (animal feed, beer, baked goods). ACG Materials was founded as Harrison Gypsum in 1955 and is headquartered in Norman, OK (www.acgmaterials.com).

“We are excited to further strengthen our position as a leading industrial mineral and aggregate producer in the Pacific Northwest,” said Paul Harrington, Chief Executive Officer of ACG. “Kitsap will expand our strategic footprint within the region and provide complementary products to serve our growing customer base in that area.”

Kitsap is ACG’s ninth add-on acquisition since H.I.G. acquired the company in 2012. “We are pleased to support ACG in its acquisition of Kitsap,” said Keval Patel, a Managing Director of H.I.G. “The investment continues our successful track record of acquiring leading mining and processing operations in attractive, high growth markets.”

H.I.G. specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing and service businesses. H.I.G. has more than $25 billion of capital under management. The firm is based in Miami with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, London, Hamburg, Madrid, Milan, Paris, Bogotá, Mexico City and Rio de Janeiro (www.higcapital.com).

© 2018 Private Equity Professional | May 24, 2018

Wind Point Carves-Out Ox Engineered

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Wind Point Partners has partnered with building products executive Dave Ulmer to acquire Ox Engineered Products, a specialty manufacturer of structural sheathing and thermal insulation building products, and a division of Hanover, PA-based Ox Industries.

As part of the transaction, Wind Point acquired Ox Industries’ engineered products division, including its Michigan and Illinois facilities and the company’s building products brands. Ox Industries will continue to operate its remaining paperboard and packaging businesses separately.

Ox’s building products are sold to both the residential and commercial end-markets nationwide. From its facility in Constantine, MI, Ox manufactures laminated fibrous board sheathing and is considered to be the largest US provider of this product.

From its facility near Decatur in Charleston, IL, the company produces structural and non-structural polyisocyanurate (PIR or polyiso) foam sheathing products which are typically used as rigid thermal insulation (www.oxengineeredproducts.com).

“Ox is a well-established leader in cost-effective, alternative sheathing solutions for homebuilders and commercial builders and the company’s products deliver a strong value proposition for customers both on cost and performance,” said Paul Peterson, a Managing Director at Wind Point. “We are particularly excited to be partnering with Dave Ulmer, who brings strong leadership and a wealth of industry experience.”

With the closing of the transaction, Dave Ulmer has joined Ox as its CEO. Mr. Ulmer most recently served as President and CEO of The Tapco Group, a manufacturer of exterior building products specializing in siding, decking, and other high-performance exterior components. In May 2017, The Tapco Group was acquired by Sydney-based Boral Limited, a multinational manufacturer of building and construction materials.

“I am extremely excited to join the Ox team and lead the organization through its next phase of growth,” said Mr. Ulmer. “We plan to build on Ox’s excellent foundation by expanding geographic scope for our customers, developing new products, and executing complementary add-on acquisitions. Residential and commercial builders alike require innovative, energy-efficient solutions at a reasonable cost, and Ox’s products provide just that. With the backing of Wind Point, we plan to invest in Ox’s growth to best service these customers’ needs.”

Wind Point invests from $30 million to $150 million in companies with revenues from $100 million to $500 million and EBITDAs of at least $10 million. Industries of interest include business services, consumer products and industrial products. Wind Point was founded in 1984 and is based in Chicago. In June 2017, Wind Point held a final closing of its eighth fund, Wind Point Partners VIII, with $985 million of capital commitments. The fund exceeded its initial hard cap of $750 million and marks the largest fund closing in Wind Point’s history (www.wppartners.com).

Financing for the transaction was provided by PennantPark Investment Advisers (www.pennantpark.com) and Eaglehill Advisors (www.eaglehillcapital.com).

© 2018 Private Equity Professional | March 2, 2018

OpenGate Goes Cross Border with Latest Buy

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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

Audax and Moelis Sell Final Piece of Quest

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Audax Private Equity and Moelis Capital Partners have completed the sale of Quest Construction Products, the only remaining division of Quest Specialty Chemicals, to Building Materials Corporation of America.

In June 2015, Quest Specialty Chemicals sold the Quest Automotive Products and Quest Industrial Products businesses to Valspar Corporation.  With the sale of these two businesses, Quest – and in turn Audax and Moelis – retained ownership of the Quest Construction Products (QCP) business.  With the sale of QCP, Audax and Moelis have fully exited their investments in Quest Specialty Chemicals.

QCP manufactures and markets roofing systems, reflective coatings for buildings, and pavement coatings for the construction market.  Brand names include Hydro-Stop, United, and StreetBond.  During their ownership term, Audax and Moelis completed two add-on acquisitions which tucked in a decorative asphalt coatings business and expanded QCP’s geographic presence into Europe.  QCP is headquartered in Charleston, SC (www.quest-cp.com).

“We congratulate CEO Doug Mattscheck and his team on successfully building QCP through two acquisitions, and expanding into new end markets and geographies. We have enjoyed partnering with Doug and Moelis Capital to execute our acquisition strategy,” said Geoffrey Rehnert, Co-CEO of Audax Group.

The Audax Group 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.  Audax has over $6 billion in assets under management in its private equity, mezzanine, and senior debt businesses. The firm was founded in 1999 and has offices in Boston, New York, and Menlo Park (www.audaxgroup.com).

Moelis Capital Partners is a middle market private equity firm founded in 2007 in connection with the formation of Moelis & Company, an independent investment bank. Moelis Capital Partners manages $870 million of committed private equity capital and specializes in traditional private equity investments in the middle market. The firm is based in New York (www.moeliscapital.com).

“Both Audax and Moelis have been great partners and resources in helping our team transform Quest into three strategic platforms through four acquisitions and investments in accelerating growth,” said Mr. Mattscheck.

Building Materials Corporation of America, the buyer of QCP, is privately held and does business under the name GAF Materials Corporation. The company, headquartered in Parsippany, NJ, is a North American manufacturer and marketer of commercial and residential roofing products (www.gaf.com).

Moelis & Company and Piper Jaffray & Co. advised Quest. Kirkland & Ellis and Fredrikson & Byron served as legal counsel to Quest.

© 2015 PEPD • Private Equity’s Leading News Magazine • 8-26-15

JLL Partners Acquires Pioneer Sand

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JLL Partners has acquired Pioneer Sand Company, Pioneer Landscaping Materials, and related entities from the company’s founders.

Pioneer is a distributor of hardscaping materials offering a range of products, including decorative stone, sand, gravel, mulch, pavers, retaining walls, and other “non-green” landscaping materials, to landscape contractors, commercial accounts and homeowners. Pioneer has 30 retail locations in Colorado and Arizona and sources products from a variety of suppliers, including 12 internally operated rock quarries and sand pits. The company also operates a civil construction excavation division and a railroad tie distribution network. Pioneer is headquartered in Colorado Springs, CO and Gilbert, AZ (www.pioneersand.com).

With the closing of the transaction, Pioneer has hired Michael McGrady as its new Chief Executive Officer. Mr. McGrady has more than three decades of experience in the landscaping and water management industries and most recently was the President of John Deere Water and the Executive Vice President of John Deere Landscapes.

“I am pleased to join Pioneer at such an exciting time in the industry. Since its founding in 1967, Pioneer has become the preeminent supplier of hardscaping solutions in the arid Southwest by focusing on the needs of its diverse customer base,” said Mr. McGrady.  “Furthermore, its excavation and railroad ties distribution businesses have market-leading positions and are poised for robust growth. With JLL’s deep building products investing experience and focus on supporting growing business, the company’s management team looks forward to pursuing new opportunities in Pioneer’s core markets as well as new markets.”

JLL Partners invests in companies across a range of manufacturing and service industries. Sectors of specific interest include healthcare, building products, financial services, aerospace, and business services.  Since its founding in 1988, the firm has invested approximately $4.4 billion across six funds.  JLL Partners is based in New York (www.jllpartners.com).

“We are excited to support Pioneer’s next chapter of growth and believe there is significant opportunity to build on the company’s successful existing platform,” said Eugene Hahn, Managing Director of JLL Partners.  “Pioneer is a clear leader in the growing hardscaping market, which will continue to benefit from increasing water scarcity in the sunbelt region as well as the ongoing housing recovery. We are especially excited to be partnering with Michael McGrady, who brings a wealth of industry and operating experience to the company.”

Slate Partners (www.slatepartnersllc.com), a Denver-based investment bank specializing in the building materials and building services sectors, was the financial advisor to Pioneer. Slate Partners was founded in 2014 by its managing partners Aaron Bachik and Jason Munoz who previously led the building materials and services group at Green Manning & Bunch.

Skadden, Arps, Slate, Meagher & Flom acted as legal counsel to JLL Partners. Jennings, Strouss & Salmon acted as legal counsel to Pioneer.

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-6-15

Thompson Street Acquires Stone Panels

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Thompson Street Capital Partners has partnered with management to acquire Stone Panels, a manufacturer of natural stone composite panels.

“Stone Panels has created a product that’s superior to both traditional dimensional stone and to any other thin-clad product available. We’re extremely impressed with the StoneLite® products and we are proud to be partnering with the Stone Panels management team that guided the company to its position of leadership in the marketplace,” said Jim Cooper, Senior Managing Partner, Thompson Street Capital Partners.  “With this acquisition we’ll be there to help foster the company’s continued success and support the accelerated growth of the business.”

Stone Panels is a manufacturer of natural stone composite panels.  The company’s StoneLite® thin-clad panels are composed of a thin stone veneer, a honeycomb backing and a high-strength fiber-reinforced epoxy skin.  The company’s products are used for a variety of building construction, retrofit and design applications. The company is based northwest of Dallas in Coppell, TX (www.stonepanels.com).

Thompson Street Capital Partners makes investments in manufacturing, service and distribution businesses with annual revenues between $20 million and $200 million, and a minimum EBITDA of $5 million. Thompson Street partners with management in recapitalizations, management buyouts, corporate divestitures, family businesses in transition, and take-private transactions.  Founded in 2000, the firm has managed more than $800 million in private equity capital and is currently investing its third fund. Thompson Street Capital Partners is based in St. Louis (www.tscp.com).

2014 PEPD • Private Equity’s Leading News Magazine • 8-1-14