building products

Ashland Buys Boccella Precast

July 7, 2017 by John McNulty

Ashland Capital Partners has acquired Boccella Precast, a manufacturer of structural precast concrete products.

Boccella’s pre-stressed hollow core concrete plank products are used predominantly in the Northeast and Mid-Atlantic regions of the United States, with a focus on the New York City market. The company’s products are used in a variety of applications including the construction of affordable housing, dormitories, apartment buildings, condominiums, hotels and educational facilities. Boccella was founded in 1969 and is headquartered bear Philadelphia in Berlin, NJ (www.boccellaprecast.com).

Main Street Capital also participated in this transaction by funding $18.6 million in a combination of first-lien, senior secured term debt and a direct equity investment. In addition, Main Street is providing Boccella an undrawn credit facility to support its working capital needs. Main Street (NYSE:MAIN) provides long-term debt and equity capital to middle market and lower middle market companies that have annual revenues ranging from $10 million to $150 million. The firm is based in Houston, TX (www.mainstcapital.com).

Ashland Capital Partners invests in companies with annual revenues of at least $10 million and cash flows of at least $3 million. Sectors of interest include industrial manufacturing and services; distribution and logistics; and business services. The firm was co-founded by John Lorentzen and Jim Lynch and is based in Chicago (www.ashlandcap.com).

Graham Sells Chelsea Building Products

March 24, 2017 by John McNulty

Graham Partners has sold Chelsea Building Products to Aluplast GmbH. The sale of Chelsea marks the fourth exit in six months for Graham Partners.

Chelsea Building Products is a designer and manufacturer of extruded profiles used in PVC windows and doors, cellular PVC molding, composite cellular PVC cladding, and other specialty building products. The company serves the repair and remodel, as well as the new construction segments of the building products industry. Chelsea’s full service offering – from profile design, to prototype, PVC formulations, to full production – provides customers a one-stop-shop for customized products. The company is based in the Pittsburgh suburb of Oakmont (www.chelseabuildingproducts.com).

Graham Partners acquired Chelsea Building Products in July 2011. During the term of its ownership EBITDA grew by 171% as the result of several initiatives: revitalized Chelsea’s customer account acquisition strategy, resulting in 29 new customer relationships; implemented Kaizen lean manufacturing programs, driving an increase of over 20% in manufacturing efficiency since 2013; and completed two strategic acquisitions, which increased capacity in core product lines and provided Chelsea with the flexibility to expand its high-growth Everlast Composite siding offering.

“We saw an opportunity to tap into Graham’s deep network of building products industry experts as a result of our longstanding history and experience in the industry. These contacts enabled us to develop and execute on a clear strategic plan for the future of the business,” said Rob Newbold, Managing Principal at Graham Partners.

Graham Partners acquires companies with EBITDA between $5 million and $50 million and will invest in smaller companies as add-on acquisitions to existing portfolio companies. The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsourced manufacturing. Graham Partners was founded in 1988 and is headquartered in Philadelphia (www.grahampartners.net).

“We greatly value the industry knowledge and operational support that Graham provided during their ownership, and we are excited for what the future holds for Chelsea under Aluplast ownership,” said Peter Dewil, CEO of Chelsea.

Aluplast is a family-owned international manufacturer of vinyl window and patio door lineal systems with production and sales operations in more than 30 countries. The buy of Chelsea will serve to accelerate growth and expand Aluplast’s market position in North America. Aluplast was founded in 1982 and is headquartered in Karlsruhe, Germany (www.aluplast.net).

Brown Gibbons Lang’s (www.bglco.com) Industrials and Building Products team was the financial advisor to Chelsea Building Products. “BGL’s strong building products and window and door expertise, combined with its significant global reach, was instrumental in identifying a strong global strategic partner for Chelsea, our customers, and our employees,” said Mr. Dewil.

Blue Point Building GESCO

March 8, 2017 by John McNulty

GESCO Holdings, a portfolio company of Blue Point Capital Partners, has acquired Savoia Canada, a distributor of ceramic, porcelain and stone surfaces used in floor and wall applications, from Graniti Fiandre SPA, a manufacturer of marble, granite, stone and porcelain surface products.

Savoia Canada distributes products used in both commercial and residential applications. The company represents such brands as Fiandre, Iris U.S., PorcelainGres, Iris Ceramica and Ariostea. Customers and end users include global companies such as Ford, BMW, McDonalds, Nike, Burger King and Starbucks, among others. Savoia Canada is headquartered near Toronto in Mississauga (www.savoia.com).

The buy of Savoia Canada is the second add-on acquisition for GESCO since Blue Point acquired the platform investment in March 2013. The original platform acquisition included the operations of Toronto-based Shnier, the largest distributor of floor coverings in Canada (www.shnier.ca). In April 2016, GESCO completed its first add-on acquisition with the buy of Tierra Sol Ceramic Tile, a distributor of ceramic and porcelain tile based in Calgary (www.tierrasol.ca).

The acquisition of Savoia Canada adds the third entity under the GESCO Group of Companies, alongside Shnier and Tierra Sol. “This move is highly strategic for GESCO, further supporting our efforts to become an even more significant player within the Canadian floor covering marketplace, especially ceramics,” said Chip Chaikin, a Partner with Blue Point.

GESCO Holdings is now one of Canada’s leading flooring and multi-surface distribution companies. The company designs, merchandises, markets, sells and distributes various licensed and proprietary private label brands to customers within multiple distribution channels. Products are sourced from over 100 suppliers throughout fourteen countries across the globe. The company is led by its President Ed duDomaine (www.gesco.ca).

“The acquisition of Savoia further strengthens GESCO’s presence in the attractive ceramic distribution marketplace, and enhances our offerings to commercial, architectural and design customers,” said Jon Pressnell, a Principal at Blue Point.

Blue Point Capital Partners is a lower middle market private equity firm that invests in manufacturing, distribution and service businesses that have from $20 million to $300 million in revenue. The firm has over $825 million in committed capital and has offices in Cleveland, Charlotte, Seattle, and Shanghai (www.bluepointcapital.com).

Graniti Fiandre, the seller of Savoia Canada, is based near Bologna in Castellarano, Italy (www.granitifiandre.com).

Leading Ridge Exits Rugby

July 19, 2016 by John McNulty

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.

Blackford Acquires Quality Aluminum Products

January 25, 2016 by John McNulty

Blackford Capital has acquired Quality Aluminum Products, a distributor of exterior aluminum building products used in the housing industry. This transaction is the seventh by Blackford’s Michigan Prosperity Fund, which invests exclusively in Michigan companies.

Quality Aluminum’s products include siding, soffit, fascia, trim coil, and gutters. The company has 80 employees and operates two facilities, one located south of Detroit in Flat Rock (35,000 sq. ft.) and the other near Grand Rapids in Hastings (87,000 sq. ft.). Quality Aluminum was founded in 1990 by brothers George and Bob Clark and is headquartered in Hastings (www.qualityaluminum.com).

The Clark family has been active in the building products industry for nearly 50 years. George and Bob Clark began their careers with Wolverine Aluminum in the early 1950s. They started Clark Brothers Metal Fabricators in 1971. Clark Brothers was a manufacturer of residential building products with manufacturing plants in Michigan and Florida. In 1984, Clark Brothers was acquired by World Mark Corporation. The Clark brothers stayed on in management positions until 1990, when they resigned and started Quality Aluminum Products.

Over the past five years, the Clark brothers have transitioned their responsibilities to their sons Mike, Bob and Eric Clark. Mike Clark will continue to serve as the company’s President, while Bob Clark (Plant Manager) and Eric Clark (IT and Human Resources) will remain in their current roles on the management team.

“Quality Aluminum has achieved a leading presence throughout the Midwest, but we see opportunities for additional growth in this region, along with significant prospects in the Southeast and Central West United States. These additional areas represent larger markets within the industry, and we are excited by the potential to significantly increase the company’s geographic capabilities and presence,” said Martin Stein, founder and managing director of Blackford Capital.

The buy of Quality Aluminum is the seventh by Blackford’s Michigan Prosperity Fund, which closed in 2012 and invests exclusively in Michigan companies. Other investments include Fenton-based Burgaflex; Grand Rapids-based Custom Profile; Metro Detroit-based Mopec; Grand Haven-based Grand Transformers; Grand Rapids-based Dickinson Press; and Hudsonville-based Grand Equipment.

Blackford Capital invests in middle-market manufacturing, distribution, and service companies in both mature and growing industries. Target companies will have revenues of $20 million to $100 million and EBITDAs of $2 million to $20 million. Blackford has offices in Grand Rapids, MI (headquarters) and Santa Monica, CA (www.blackfordcapital.com).

Monomoy Enters Hot Building Products Sector

January 6, 2016 by John McNulty

Monomoy Capital Partners has created a new platform, Construction Resources, to acquire two companies – Construction Resources, Inc. and Builder Specialties, Inc. Both companies are value-added building products distributors to home builders in the Southeast region of the United States. Monomoy acquired the companies through its second fund, Monomoy Capital Partners II, LP.

Builder Specialties, Inc. is a distributor and installer of appliances, garage doors, hearth products and lighting products. The company operates 11 distribution centers, design centers and showrooms in greater Atlanta, the Florida panhandle and South Florida. Construction Resources, Inc. is a fabricator, distributor and installer of countertops, glass products, flooring products and cabinets. The company operates 19 distribution centers, design centers and showrooms in Georgia, Florida, South Carolina and Alabama.

As a combined business Construction Resources will have annual sales of approximately $200 million and will provide a full portfolio of home products and installation services to national home builders, regional home builders and general contractors throughout the Southeast. The company has 700 employees and is headquartered in Decatur, GA (www.crhomeusa.com) (www.builderspecialties.net).

“We are excited to welcome Construction Resources to the Monomoy portfolio,” said Justin Hillenbrand, a partner and Co-Executive Officer at Monomoy. “We look forward to working with the company’s management team to integrate the two businesses and to improve customer service, product quality and geographical reach.”

Monomoy acquired the businesses from their owner operators and are presently active working with management to integrate the two acquisitions. Mitch Hires and David Haun, the owner-operators of the two underlying businesses, are investing in the combined company and will serve as the Chief Executive Officer and President of Construction Resources going forward.

“We see a significant opportunity to expand and grow our business as the housing market continues to improve, particularly in greater Atlanta and surrounding regions,” said Mr. Hires. “Monomoy brings Construction Resources a unique combination of financial and operational capabilities, and we are convinced that the Monomoy team is the right partner to help take Construction Resources to the next level of excellence for our customers, suppliers and employees.”

Monomoy Capital Partners makes control investments in middle market businesses with $50 million to $500 million in annual sales. Sectors of interest include manufacturing, distribution, consumer product and foodservice industries. Over the past ten years, Monomoy has acquired over 40 middle market companies from a variety of sellers (including family owners, public companies, lenders and financial sponsors) in a wide range of special situations (including bankruptcy, asset sales, equity sales and restructurings). The firm was founded in 2005 and is headquartered in New York (www.mcpfunds.com).

Bank of America and LBC Credit Partners (www.lbccredit.com) provided financing for the transaction. Mike Sullivan – a Partner in Grant Thornton’s Transaction Advisory Services group – provided financial and accounting due diligence (www.grantthornton.com). Garry Jaunal and Edward West from Baker & McKenzie (www.bakermckenzie.com) provided Monomoy with legal counsel.

Swiftsure Capital Acquires Quantum Windows and Doors

October 14, 2015 by John McNulty

Swiftsure Capital and Nitze-Stagen Capital Partners have acquired Quantum Windows and Doors. Quantum was sold to the investor group by Pendulum Investment which acquired the company in 2005.

Quantum Windows is a manufacturer of hand-crafted wood windows and doors with approximately 50% of the company’s products sold in the state of Washington. However, the company is increasingly seeing new opportunities for product sales from across the country. Over the past 12 months the company has experienced a 40% increase in revenues.

Quantum was founded in 1982 in a barn by general contractors who were dissatisfied with mass produced windows available at the time. Today, the company has 62 employees and operates out of a 56,000-square-foot facility located north of Seattle in Everett, WA. Quantum has product showrooms in Washington, California, British Columbia and Connecticut. The company is led by its President Melissa Benton who will remain with the company under the new ownership (www.quantumwindows.com).

As part of the acquisition, Jeff Klein has been appointed Chief Executive Officer of Quantum. Mr. Klein, a senior executive in the window manufacturing industry, was previously Senior Vice President of Ply Gem Industries – a publicly traded maker of building products – and President of several window companies owned by Ply Gem. Prior to working with Ply Gem, he was Senior Vice President of Milgard Manufacturing which was sold by the Milgard family in 2001 to Masco. James Milgard is currently an Advisory Partner with Swiftsure Capital. “Quantum is a national leader in custom wood window manufacturing,” said Mr. Klein. “They have set the standard for superb craftsmanship and are the go-to name for complex architectural projects that very few companies can execute.”

“There are a number of well-managed Northwest companies, like Quantum, that are seeking a change of ownership for generational transition issues or otherwise,” said Gordon Gardiner, Managing Partner of Swiftsure Capital. “Swiftsure’s goal is to find those companies and help them realize their full growth potential. We’re happy to have led this deal for Quantum, and we look forward to seeing the company flourish.” Swiftsure Capital is a private equity and investment banking firm focused on opportunities in the Pacific Northwest. The firm was founded in 2004 by Scott Wilson and is headquartered in Seattle (www.swiftsurecapital.com).

Nitze-Stagen Capital Partners, Swiftsure’s partner on this transaction, invests in emerging companies based in the Pacific Northwest. The firm was founded by Peter Nitze and is headquartered in Seattle (www.nitzestagencp.com).

Dunes Point Acquires Harvey Building Products

October 6, 2015 by John McNulty

Dunes Point Capital has acquired Harvey Building Products, a manufacturer of windows and doors and a distributor of other building products such as siding and roofing.

Harvey sells directly to professional contractors and builders. The company has approximately 1,500 employees and operates two manufacturing facilities, 33 warehouses and 14 product showrooms. Harvey was founded in 1961 and is headquartered near Boston in Waltham, MA (www.harveybp.com).

Dunes Point Capital, through DPC Investment Partners, provided the controlling equity for the transaction. The debt for the transaction was provided by Franklin Square Capital Partners (www.franklinsquare.com); GSO Capital Partners (www.blackstone.com); Ladder Capital Finance (www.laddercapital.com); and Bank of America Merrill Lynch (www.baml.com).

Dunes Point Capital (DPC) is a family office and private investment firm that makes control investments in companies operating in the general industrial and energy sectors. DPC targets companies with enterprise values of up to $500 million. DPC was founded in 2013 by Timothy White, a former Senior Managing Director of GSO Capital Partners and Blackstone where he served as Head of GSO Private Equity Investing, Co‐Head of Mezzanine Investing, and Co-Portfolio Manager for GSO’s Capital Opportunities Fund I. Dunes Point Capital is based in Rye, NY (www.dunespointcapital.com).

Kirkland & Ellis served as legal advisor to DPC and Alvarez & Marsal Transaction Advisory Group served as financial advisor. Harris Williams & Co. served as financial advisor to Harvey.

Perella Weinberg Invests in Western Window

August 4, 2015 by John McNulty

Western Window Systems, a door and window manufacturer, has received an investment from PWP Growth Equity, a private equity fund managed by Perella Weinberg Partners. Investing in the company with PWP is Western Window Systems CEO Scott Gates and other members of the senior management team.

Western Window Systems is a maker of doors and windows primarily used in wide opening applications – such as multi-slide pocket doors and bi-folding doors – that are used to facilitate indoor/outdoor living. The company’s products are manufactured from aluminum and vinyl and are sold into the high‐end custom home market, the production home market, and select commercial markets. The company was founded in 1959 and is headquartered in Phoenix (www.westernwindowsystems.com).

“Western Window Systems has a strong and differentiated competitive position and a high-caliber leadership team. We are thrilled to support Scott and the rest of the team in the realization of their strategic goals during this exciting phase of growth,” said David Ferguson, Co-Head of PWP Growth Equity.

According to PWP, Western Window is currently producing its fifth straight year of 50% sales growth, and was seeking a new partner to provide capital and expertise to back a plan to expand rapidly throughout North America. “PWP Growth Equity brings significant value to Western Window Systems, including their impressive track record of success with businesses in the building products and services sectors. We look forward to partnering with their team as we continue to pursue aggressive growth opportunities and further serve our customers,” said CEO Scott Gates.

PWP Growth Equity is co-managed by partners David Ferguson and Chip Baird and invests in lower middle market companies operating in the consumer, services, and industrial sectors. The fund closed in October 2014 at its hard cap with $600 million in capital commitments. Mr. Ferguson and Mr. Baird joined Perella Weinberg in 2012 from Weston Presidio, a lower middle market private equity firm, where they were both partners.

Perella Weinberg was founded in 2006 and has more than 400 employees in its offices in New York, London, Abu Dhabi, Denver, Dubai, and San Francisco (www.pwpartners.com).

Cyprium Backs Third Gen Buy of Weaber

July 29, 2015 by John McNulty

Cyprium Partners has made a preferred equity and subordinated debt investment in Weaber, a provider of finished hardwood lumber products. The investment by Cyprium was used to finance the acquisition of the company by third generation President and CEO, Matthew Weaber.

Weaber’s finished hardwood lumber products include boards, flooring, moldings, stair parts, and factory primed and painted finger-jointed products. Customers include pro-contractor yards, flooring distributors, building products wholesalers, and home improvement centers. The company was founded in 1941 and is headquartered in Lebanon, PA (www.weaberlumber.com).

“Cyprium is excited about the opportunity to support Matt’s acquisition of Weaber and to provide the capital to continue its strong growth trajectory,” said Leland Lewis, a Managing Partner at Cyprium. “Matt, his father Galen, and the management team at Weaber have created a unique vertically-integrated business model that we believe delivers customers the best product, service, and value in the industry.”

The investment in Weaber is Cyprium’s sixth transaction from Cyprium Investors IV, LP, which closed in December 2014 with $460 million of capital commitments. The five other investments include a just closed mezzanine investment in M-D Building Products (based in Oklahoma City, OK); B.J. Alan Company, dba Phantom Fireworks (Youngstown, OH); CV Holdings, a maker of packaging products for the pharmaceutical and food industries (based in Auburn, AL); Hobbico, a distributor of radio-control models and general hobby products (Champaign, IL); and Ice River Springs, a bottled water company with eleven manufacturing plants located in Canada and the US (Shelburne, ON).

Cyprium provides capital for acquisitions, growth, shareholder or partnership buyouts, refinancings and dividend distributions, without requiring majority control. The firm provides capital via subordinated debt, preferred stock and common stock. Cyprium invests from $10 million to $60 million per transaction in companies with more than $10 million of EBITDA that are based in the US or Canada. The firm has offices in Cleveland, New York, and Chicago (www.cyprium.com).

High Road Acquires Cali Bamboo

July 16, 2015 by John McNulty

High Road Capital Partners has acquired Cali Bamboo, a direct-to-consumer retailer of bamboo flooring. This is High Road’s fifth platform acquisition for its $320 million second fund which closed in December 2013.

Cali Bamboo co-founders Jeff Goldberg, CEO, and Tanner Haigwood, Vice President of Business Development, invested in the transaction alongside High Road and will continue to lead the company post-closing.

Cali Bamboo’s products include bamboo flooring, composite decking, bamboo plywood, eucalyptus flooring, bamboo fencing, and cork tiles. In addition to its direct-to-consumer sales, the company also sells to contractors and architects, flooring dealers, and retailers. Cali Bamboo was founded in 2004 and is headquartered in San Diego (www.calibamboo.com).

Bamboo is among the fasting-growing plants on Earth, making it an environmentally sustainable alternative to conventional hardwoods. “Green building products are a rapidly growing segment of the new construction and remodeling markets. Consumers and businesses are seeing the aesthetic, economic and environmental benefits of bamboo and other renewable materials over traditional hardwoods,” said Ben Schnakenberg, a High Road Partner.

High Road invests in manufacturing, service, or value-added distribution businesses with revenues of $10 million to $100 million and EBITDAs of $3 million to $10 million. High Road has now completed 37 transactions – 14 platform investments, 19 add-on acquisitions and four exits – since its founding in 2007. High Road is based in New York (www.highroadcap.com).

To grow Cali Bamboo, High Road intends to develop new products and expand distribution channels. “We look forward to working with Cali Bamboo’s entrepreneurial team to leverage the company’s brand across new product categories and to more fully develop multiple distribution channels,” said Mr. Schnakenberg.

“Since founding the company in 2004 as a direct-to-consumer, online retailer of bamboo building products, we have served more than 250,000 customers,” said Mr. Goldberg. “We are building a presence in other distribution channels, including a rollout with a premier home improvement retailer. As our new partner, High Road will provide guidance and resources to support the rapid growth of our business.”

Mr. Schnakenberg led the transaction for High Road and was assisted by Jerry Anderson, Operating Partner; Scott Rubino, Vice President; and James Karle, Associate.

Monroe Capital (www.monroecap.com) was the sole lead arranger and administrative agent on a unitranche credit facility to support this acquisition.

Cali Bamboo was represented in the transaction by San Diego-based investment bank Shoreline Partners (www.shoreline.com).

Argosy Adds-On to Fairway Building Products

July 16, 2015 by John McNulty

Fairway Building Products, a portfolio company of Argosy Investment Partners, has acquired Carfaro, a manufacturer of aluminum railings used in residential and commercial buildings.

The buy of Carfaro is the first add-on acquisition for Fairway – a manufacturer of railing systems for residential and commercial decks – since being acquired by Argosy in September 2014. Argosy’s objective is to build the Fairway platform into a provider of a complete line of railing products to multiple end markets.

In addition to manufacturing aluminum railings, Carfaro also provides drafting, estimating, engineering, and installation services. Customers of Carfaro include 8 of the 10 largest homebuilders in the country including Toll Brothers, Pulte Homes, and Lennar Homes as well as home improvement contractors, international general contractors, and architects. The company was founded in 1994 by Joseph Carfaro, President, and operates out of a single manufacturing facility in Trenton, NJ (www.carfaro.com).

According to Argosy, Mr. Carfaro has created in-house automated manufacturing and production capabilities which differentiate Carfaro from its competition. These capabilities have allowed Carfaro to build relationships with local and regional contractors for quality, on-time deliveries which have made it an entrenched supplier.

To complete the Carfaro acquisition, Argosy made a follow-on investment in Fairway through its fourth fund, Argosy Investment Partners IV, LP, a $180 million fund which closed in June 2010. In April 2015, Argosy held a final closing of Argosy Investment Partners V, LP with $300 million of capital commitments.

Argosy invests from $5 million to $15 million in lower middle market companies that have revenues of $10 million to $100 million and EBITDA margins of 10% or greater. Sectors of interest include manufacturing, business services, and value-added distribution. The firm was founded in 1990 and is headquartered in the Philadelphia suburb of Wayne, PA (www.argosycapital.com).

Citizens Bank (www.citizensbank.com) and Graycliff Partners (www.graycliffpartners.com) – the incumbent lenders that provided the debt financing for the buy of Fairway Building Products – provided senior and subordinated financing, respectively, to finance the Carfaro acquisition.

Trive Acquires Architectural Granite & Marble

July 7, 2015 by John McNulty

Trive Capital has acquired Architectural Granite & Marble, an importer and distributor of natural and engineered stone that is used in residential and commercial construction.

Customers of Architectural Granite & Marble (AG&M) include countertop fabricators, architects, interior designers, and commercial contractors. AG&M was founded in 1992 and has five locations across the US. The company is headquartered northwest of Austin in Spicewood, TX (www.agmgranite.com).

“We are excited to partner with the AG&M management team that has a successful history of executing a differentiated strategy in the stone distribution segment,” said Conner Searcy, Managing Partner at Trive Capital. “Given Trive’s experience in the building products sector and our hands-on approach to portfolio company operations, we are uniquely suited to support the continued expansion of AG&M.”

Trive Capital invests from $10 million to $60 million in North American headquartered companies that have revenues of $30 million to $500 million. Sectors of interest include automotive & transportation; aerospace & defense; building products; construction & infrastructure; consumer goods; energy services; healthcare; manufacturing and industrials; chemicals; distribution; business & professional services; and communications. Trive, founded in 2012 by Conner Searcy and Chris Zugaro, is currently investing from a $300 million institutional fund raised in 2013. The firm is based in Dallas (www.trivecapital.com).

“Trive’s approach and desire to understand our business and help us grow clearly differentiated them from other financial partners,” said Jack Seiders, AG&M’s President and Founder. “AG&M has always been a relationship-focused company, and we feel Trive is a great fit given their similar orientation. Throughout the process, Trive provided us with considerable resources and demonstrated an open and honest approach that has the entire AG&M team very excited about a successful future together.”

According to Trive Vice President Dan Lenahan, AG&M has a number of value creation strategies that it can pursue including product line expansion and entering new geographies. “The collaborative dynamic struck between AG&M and Trive gives us the opportunity to continue to improve daily operations, successfully execute a well-rounded growth strategy, and unlock the company’s full potential.”

Monroe Capital provided a senior credit facility to support the acquisition of AG&M by Trive.

Highlander Sells Custom Windows Systems to Nautic

August 1, 2014 by John McNulty

Highlander Partners has completed the sale of its portfolio company, Vidrio Holdings and its operating subsidiary, Custom Windows Systems, to Nautic Partners.

Custom Windows Systems (CWS), acquired by Highlander in December 2012, is a designer, manufacturer and marketer of impact-resistant and non-impact windows and doors, as well as porch enclosure products. CWS primarily serves the repair and remodeling markets in Florida and other coastal regions that maintain strict building codes due to exposure to high winds, tropical storms, and hurricanes. The company’s products are sold to building product distributors, independent dealers, builders and contractors. The company was founded in 1986 and is based in Ocala, FL (www.cws.cc).

“Greg Schorr and his team have done a tremendous job growing CWS and taking the company to the next level. CWS has grown in revenue and profitability since the first month we made our investment,” said Jeff Hull, Highlander’s Managing Partner. “The company’s success has been achieved through strong leadership and superior customer service. The team’s efforts have re-established CWS as a leader in the Florida window market and positioned the company for even greater future success in the fast growing and demanding southeastern market.”

Highlander Partners makes investments in middle market businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Sectors of interest include healthcare, basic manufacturing, food, and building materials. The firm has over $800 million in capital under management and is based in Dallas (www.highlander-partners.com).

“We believe that CWS has developed into one of the largest and most well-respected window and door manufacturers in Florida by developing high quality products and providing a consistently high level of service to its customers. The company is ideally positioned for further growth given the attractiveness of the Florida market and the company’s leading reputation across multiple product categories,” said Doug Hill, Managing Director of Nautic. “We are very pleased to be partnering with the CWS’ management team.”

Nautic Partners is a middle-market private equity firm with over $2.5 billion of equity capital under management. Nautic targets majority equity investments of $25 million to $75 million. Sectors of interest include business services, manufacturing, and healthcare. The firm was founded in 1986 and is headquartered in Providence, RI (www.nautic.com).

“We are highly impressed with the CWS management team, which has driven notable growth at the organization,” said Chris Pierce, Principal of Nautic. “The market for windows and doors is growing, particularly in the impact-resistant and vinyl segments where CWS has a long-running track record of producing high-quality, trusted products. We also believe the new product line that is being introduced this month will continue to drive growth for the company, particularly on the non-impact side of its business.”

GE Capital, Jefferies, Newstar Financial, and Triangle Capital Corporation provided financing for the transaction.

BB&T Capital Markets (www.bbtcapitalmarkets.com) served as the exclusive financial advisor to CWS in connection with this transaction.

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

Wynnchurch Acquires Indiana Limestone

May 14, 2014 by John McNulty

Wynnchurch Capital has acquired out of bankruptcy the assets of Indiana Limestone Company, a dimensional limestone quarrier and fabricator.

“We believe the company’s superior products and established customer base leave Indiana Limestone well positioned for future growth as construction markets recover,” says Wynnchurch Managing Partner John Hatherly.

Indiana Limestone Company is the largest limestone quarrier and fabricator in North America. The company owns and operates quarries covering over 4,000 acres and has reserves well in excess of 100 years supply in its eight main quarries. The company is the only fully integrated supplier of Indiana Limestone operating in the world. Indiana Limestone is headquartered in Oolitic, IN (www.indianalimestonecompany.com).

“Our investment in Indiana Limestone allows Wynnchurch to further expand into the building products industry. Indiana Limestone in known for its superior quality stone. We anticipate developing and executing more aggressive and comprehensive sales and marketing strategies to better communicate its superiority to the marketplace. To that end, we are pleased that Tom Quigley has joined the company as Chief Executive Officer. Tom has held senior leadership positions at Owens Corning and Ingersoll Rand, and we believe his experience in the building products industry will set a course for rapid growth,” said Wynnchurch Partner Terry Theodore.

Wynnchurch Capital makes investments of $10 million to $90 million in middle-market companies that have revenues of $5 million to $500 million. Sectors of interest include niche manufacturing, transportation & logistics, business services, value-added distribution, energy and power services, general industrials, and metals & mining. Wynnchurch manages a number of private equity funds with capital under management in excess of $1 billion. The firm was founded in 1999 and is located in the Chicago suburb of Rosemont with additional offices in Detroit and Toronto (www.wynnchurch.com).

Investment bank Quarton Partners (www.quartonpartners.com) acted as the exclusive financial advisor to Indiana Limestone in this transaction.

Fulcrum Exits Alumicor

December 11, 2013 by John McNulty

Fulcrum Capital Partners has sold its portfolio company Alumicor Limited to Apogee Enterprises for approximately C$54 million. Fulcrum Capital acquired Alumicor in 2007 through its third investment fund.

Alumicor is a manufacturer and supplier of architectural aluminum building products, serving the institutional, commercial and industrial markets across Canada. The company is headquartered in Toronto (www.alumicor.com).

Apogee Enterprises (Nasdaq:APOG) is a designer and developer of glass products, services, and systems primarily in North America, Europe, and Brazil. The company operates in two segments, Architectural Products and Services, and Large-Scale Optical Technologies. The Architectural Products and Services segment designs, engineers, fabricates, installs, maintains, and renovates the walls of glass, windows, storefront, and entrances comprising the outside skin of commercial and institutional buildings. The Large-Scale Optical Technologies segment manufactures and markets value-added glass and acrylic products under the Tru Vue brand name primarily for the custom picture framing market. This segment distributes its products through independent distributors and retailers, as well as directly to museums, and public and private galleries. Apogee Enterprises was founded in 1949 and is headquartered in Minneapolis (www.apog.com).

Fulcrum Capital Partners manages over C$750 million of capital and invests both equity and subordinated debt in companies with revenues of C$10 million to C$250 million. Sectors of interest include services, manufacturing, consumer products, distribution, food and retail. The firm has offices in Vancouver and Toronto (www.fulcrumcapital.ca).

Tricor Pacific Capital Partners Exits Expocrete

April 5, 2013 by

Tricor Pacific Capital Partners has sold its portfolio company Expocrete Concrete Products to Oldcastle Building Products.

Expocrete Concrete Products is Western Canada’s largest custom manufacturer of specialized concrete hardscape and masonry products supplying the commercial, retail and infrastructure end markets in Western Canada and Washington State. The company is based in Edmonton (www.expocrete.com).

Tricor Pacific Capital Partners acquired Expocrete Concrete Products in November 2007. During the term of ownership Expocrete expanded its geographic footprint from one plant in Alberta to seven plants operating across all four Western Canadian provinces and Washington State, completed two add-on acquisitions, greenfielded one of the industry’s lowest cost manufacturing facilities in North America, and executed significant financial and operational improvements.

Tricor Pacific invests in middle-market companies with enterprise values from $25 million to $250 million in the manufacturing, service, distribution and consumer product sectors that are located in the west and mid-west regions of Canada and the United States. The firm currently manages approximately $1 billion of capital and is investing its fourth fund with $555 million in committed capital. Tricor Pacific was founded in 1996 and is headquartered in Vancouver with an additional office in Chicago (www.tricorpacific.com).

Oldcastle Building Products is a manufacturer of hardscapes, retaining walls, concrete masonry, utility precast, architectural glass, and a variety of other building products. The company operates across 43 US states and with the acquisition of Expocrete has operations in 6 Canadian provinces. Oldcastle Building Products is headquartered in Atlanta (www.oldcastle.com).

Oldcastle Building Products is a subsidiary of CRH plc, which is a provider and distributor of building materials. CRH is headquartered in Dublin, Ireland (www.crh.com).

BlackEagle Partners Acquires H&H Lumber Company

January 9, 2013 by

US LBM Holdings, a building products platform of BlackEagle Partners, has acquired H & H Lumber Company from second generation owner, Tim Heytens.

H & H Lumber Company (H&H) serves the northern Wisconsin and greater Duluth, Minnesota markets providing homebuilders, specialty contractors and professional remodelers with a full-suite of building materials and services. The company is based in Superior, WI (www.hhlumber.com).

H&H joins Lyman Lumber Company, a US LBM division that is one of the largest building material suppliers in Minnesota and Wisconsin.

“Since my father founded the business in 1969, H&H has dedicated itself to serving the construction communities of Superior and Duluth with high quality materials and first-class service. Partnering with US LBM and Lyman brings the added resources ensuring that our customers receive the same quality and service that they have grown to expect and deserve,” said Mr. Heytens.

“H&H’s excellent reputation and leading presence in its market made it an attractive fit for Lyman,” said Dale Carlson, President of Lyman Lumber Company. “We are excited to partner with the H&H team, customers and vendors as we continue to grow as the leading supplier in Wisconsin and Minnesota.”

US LBM is a collection of building material distributors serving the Midwest, Northeast, and Mid-Atlantic in eight states with more than 40 locations. US LBM is owned by private equity firm BlackEagle Partners and is recognized as one of the fastest growing suppliers of building products in the US. The company is headquartered in Green Bay, WI (www.uslbm.com).

“As a longstanding leader in its local market, the H&H acquisition is a great fit for US LBM. Through acquisition and new locations, we continue on our journey of building a better company, not just a bigger one,” said L.T. Gibson, President & CEO of US LBM.

BlackEagle Partners is an operations focused, middle market private equity firm that seeks to acquire underperforming and distressed businesses, non-core subsidiaries, and companies in out-of-favor industries. The firm invests between $5 million and $25 million in businesses in a variety of industries and in situations ranging from companies with current operational losses, in or near bankruptcy, to profitable situations where a change in ownership can revitalize the outlook. The firm has offices in Bloomfield Hills, MI and New York, NY (www.blackeaglepartners.com).