building supplies

Grey Mountain Partners Acquires Honsador

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Grey Mountain Partners has acquired Honsador Holdings, a distributor of building products and electrical supplies.

Honsador is the largest independent distributor of building products and electrical supplies in the state of Hawaii, serving the residential, commercial, and military markets. The company operates out of two divisions: Honsador Lumber and Building Materials (LBM) and Alpha Electric (Alpha). LBM is the largest independent lumber and building materials distributor on the big island, and Alpha is the largest independent distributor of electrical products in the state of Hawaii.  Honsador was founded in 1935 and was originally known as Honolulu Sash and Door.   The company has seven locations in the Hawaiian Islands and is headquartered in Kapolei on the island of Oahu (www.honsador.com) (www.alphaelectricsupply.com), (www.hwthawaii.com) and (www.honsadorroofing.com).

“The company has developed a market leading position in the state of Hawaii due to the breadth and quality of its product offering, logistical mastery of moving products from the mainland to the islands, and unparalleled customer service,” said Beth Lesniak, Affiliate Manager at Grey Mountain.  “We are excited to work with the company as it grows the business by addressing additional contractor needs and serving new customers across the islands.  We believe the financial backing and operational support from Grey Mountain will allow the company to better serve its customers and pursue new opportunities in the market.”

Grey Mountain Partners invests up to $75 million in control acquisitions of companies with enterprise values between $30 million and $150 million. Sectors of interest include aerospace & defense, building products & materials, business process outsourcing, diversified manufacturing, energy & power, financial services, food & beverage, healthcare services & technology, industrial services, packaging, professional services, specialty chemicals, technology, transportation & logistics, wholesale and distribution. Grey Mountain was founded in 2003 by Managing Partners Rob Wright and Jeff Kuo and is based in Boulder with an additional office in Minneapolis (www.greymountain.com).

2014 PEPD • Private Equity’s Leading News Magazine • 12-15-14

H.I.G. Exits American Hardwood Industries

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H.I.G. Capital has completed the sale of its portfolio company American Hardwood Industries to Baillie Lumber.

American Hardwood Industries (AHI) is a manufacturer and supplier of hardwood lumber in the United States and abroad. AHI is the largest producer in its regions with over 100 million board feet of annual capacity across eleven sawmills and kiln drying facilities in Virginia and throughout the Appalachian territory. AHI is a vertically-integrated supplier that sells its products under the Augusta, Blue Triangle and Graham Lumber brands, as well as under its Cross Creek wholesale trading division. The company also sells hardwood flooring under the Montebello Flooring brand. AHI was founded in 1955 and is headquartered in Waynesboro, VA (www.ahwood.com).

Baillie Lumber is one of North America’s largest hardwood lumber manufactures, distributors and exporters. The company is based near Buffalo in Hamburg, NY (www.baillie.com).

H.I.G. originally invested in AHI, then Augusta Lumber, in 2006. Since that time, the company has completed multiple add-on acquisitions that more than doubled the size of the business and also invested heavily in manufacturing best practices.

“H.I.G. has been an outstanding and committed partner to American Hardwood Industries. Through a series of add-on acquisitions and operational investments, H.I.G.’s support has helped AHI to more than double its revenues, upgrade its equipment, invest in business processes, develop its brands and expand its international reach to establish the company as a leading exporter of US hardwoods,” said John O’Dea, CEO of AHI.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. Capital has more than $15 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 3-26-14