cabinetry

Platinum Acquires Cabinetworks from AIP and GIC

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Platinum Equity has agreed to acquire The Cabinetworks Group from American Industrial Partners and GIC.

Ann Arbor, Michigan-based Cabinetworks is a manufacturer and distributor of both framed and frameless, kitchen and bath cabinets. The company operates 14 assembly plants and 3 component facilities and sells its products through dealers, home centers and distributors.

Cabinetworks sells its products under 19 brand names including KraftMaid, Medallion, Smart, Merillat, Yorktowne, Echelon, Advanta, Studio Full Access, Master WoodCraft, and Cabinets 2000.

Cabinetworks (formerly ACProducts) was formed by American Industrial Partners in October 2012 to acquire the cabinets business of Armstrong World Industries. In November 2018, the company acquired Elkay Wood Products from privately-held Elkay Manufacturing Company. The combination of ACProducts and Elkay created a company with more than $500 million in revenue. In February 2020, ACProducts acquired Masco Cabinetry for $1 billion and the combined business, with annual revenues of more than $1.8 billion, was renamed Cabinetworks with Joe Gross, the CEO of Masco Cabinetry, leading the business.

“Cabinetworks has a comprehensive portfolio of highly-respected, fast-growing brands, a strong leadership team and a proven track record for growth,” said Jacob Kotzubei, a partner at Platinum. “The company’s leading position in the cabinets space, combined with Platinum’s operational toolkit and M&A resources, make Cabinetworks a great fit for our portfolio.”

“We are thrilled to partner with Joe and the entire Cabinetworks team,” said Todd Golditch, a managing director at Platinum. “They have built an attractive platform and helped transform the industry, and there is also a significant amount we can do together to continue their history of innovation and grow the business both organically and through additional M&A activity.”

Platinum has invested in the building products sector before through the March 2017 acquisition of Interior Logic Group, a national provider of outsourced design and installation services to homebuilders and multi-family property owners, from MSouth Equity Partners; and the May 2015 buy of PrimeSource, a national distributor of construction fasteners and other non-lumber building products to the new construction and remodeling markets, from Tokyo-based multinational ITOCHU Corporation.

“Platinum has had a lot of success in the building products sector, we know the industry well and are excited about the opportunities ahead for Cabinetworks,” added Mr. Golditch.

Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm is currently investing from Platinum Equity Capital Partners V LP, a $10 billion buyout fund, and Platinum Equity Small Cap Fund LP, a $1.5 billion buyout fund focused on the lower middle market. The firm has completed more than 300 acquisitions since its founding in 1995 and is headquartered in Beverly Hills.

American Industrial Partners (AIP) makes equity and debt investments in manufacturing and industrial services companies that have revenues of at least $300 million, negative EBITDA to $250 million, and enterprise values of up to $2 billion. The firm was founded in 1989 and is headquartered in New York City.

“We have been honored to work with a best-in-class management team and a remarkable and dedicated workforce across the United States to build an industry-leading kitchen and bath cabinetry business,” said Rick Hoffman, a partner at AIP. “We are proud of what Cabinetworks has accomplished during our partnership over the last eight years and believe the company is now positioned for still greater success in the years to come.”

GIC, AIP’s co-investor in Cabinetworks, was founded in 1981 to manage Singapore’s foreign reserves and to invest in private equity funds as well as directly in companies. GIC is headquartered in Singapore with a network of offices in ten cities worldwide.

BofA Securities and Barclays were the financial advisors to Cabinetworks and BofA is leading the debt financing for the acquisition.

The buy of Cabinetworks by Platinum is expected to close by the end of June 2021.

© 2021 Private Equity Professional | April 6, 2021

GHK Buys Dura Supreme Cabinetry

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GHK Capital Partners has acquired Dura Supreme Cabinetry from the company’s second-generation founding family.

Dura Supreme is a vertically integrated manufacturer of semi-custom and custom, framed and frameless kitchen and bath cabinetry. The company’s products are sold through a nationwide dealer network.

Dura Supreme was founded in Minnesota by Donald Stotts in 1954 and today has more than 400 employees and a 220,000 sq. ft. manufacturing facility located west of Minneapolis in Howard Lake, MN.

As part of this transaction, Tony Sugalski, an operating executive with experience serving the residential end market and the dealer channel, has joined Dura Supreme as chief executive officer. In addition, Perry Fails has been named president, together with his current role as chief operating officer of the company. All other key senior executives are remaining with the company.

“We are extremely pleased to partner with the Dura Supreme team to build upon the company’s highly-regarded cabinetry brand and 60-year heritage serving designers and homeowners with premium cabinetry,” said Gil Klemann, managing partner of GHK. Mr. Klemann founded GHK in January 2018 after more than sixteen years at Goldman Sachs where he invested in control private equity transactions in the industrials, financial services, retail consumer and media sectors.

“GHK brings operational expertise and capital strength to this partnership, establishing a valuable strategic platform to accelerate our growth and our ability to create innovative and highly desired premium cabinetry for our customers,” said Mr. Fails. “We are excited about the potential this new business partnership fosters.”

GHK invests in companies with $15 million to $40 million of EBITDA that are active in the manufacturing, building products and services, business services, distribution and logistics, packaging, and general industrial sectors. The firm is headquartered in Greenwich, CT.

Harris Williams & Co. was the financial advisor to the Stotts family on this transaction.

© 2019 Private Equity Professional | October 17, 2019

Gridiron Capital Acquires Tedd Wood

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Executive Cabinetry, a Gridiron Capital portfolio company, has completed the acquisition of Tedd Wood, Inc., a manufacturer of high-end custom and semi-custom cabinetry.

Tedd Wood manufactures custom and semi-custom premium cabinets under the Tedd Wood Custom, Vision Collection and Value Plus brand names. The company was founded by Matt Pannebaker and Ted Pannebaker in 1994 and is based in Thompsontown, PA (www.teddwood.com).

“Tedd Wood is a terrific addition to the Executive umbrella,” said Gridiron Capital’s Managing Partner, Tom Burger. “Tedd Wood has a reputation for premium products and top notch customer service. We look forward to partnering with Matt and Ted Pannebaker and the rest of the management team to bring the Tedd Wood brand into new markets.”

Executive Cabinetry manufactures custom and semi-custom kitchen and bathroom cabinetry that is sold under the Executive Cabinetry, Bellini Collection and Designer Series of Finishes brand names. The company’s products include kitchen and bath cabinetry, custom accent pieces such as wood hoods, and a range of accessories such as moldings, trims, posts and turnings. Executive Cabinetry is headquartered in Simpsonville, SC (www.executivecabinetry.com).

“We are thrilled to have the opportunity to partner with Tedd Wood,” said Executive’s Chief Executive Officer, Dave Romeo. “Tedd Wood is a first class brand, with a highly skilled management and factory team, and one we believe has significant potential throughout North America.”

“It has been a gratifying experience to grow the Tedd Wood brand from scratch with our excellent team,” said Matt Pannebaker, President and Co-Founder of Tedd Wood. “When we first discussed a partnership with Executive, we immediately saw the value in joining forces. Executive is an ideal partner, and I look forward to working closely with Dave Romeo and Gridiron to take both our companies to the next level.”

Gridiron Capital invests in manufacturing, service and specialty consumer companies that have EBITDAs from $5 million to $30 million and that are located in the United States and Canada. The firm is based in New Canaan, CT (www.gridironcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-7-13