construction products distribution

Foundation Investment Partners has acquired the assets of Discount Drainage Supplies from Jim Gory and Pete Gory.

Discount Drainage Supplies is a stocking distributor of drainage and construction products, including culvert pipes, PVC piping, and septic supplies. The company has three locations in Ohio and is headquartered in Akron (www.discountdrainage.com).

Foundation Investment Partners invests in companies that have EBITDA from $1 million to $6 million and EBITDA margins greater than 7.5%. Sectors of interest include niche manufacturing, value-added distribution, outsourced business services, and software. The firm was founded and is led by its managing partner David Wood and is headquartered near Cleveland in Chagrin Falls, OH (www.foundationpartners.net).

“Discount Drainage has been highly successful and will fit into our model quite well,” said Mr. Wood. “We will continue the world-class standards of Discount Drainage, providing additional tactical support, strategic guidance and financial resources.”

Generational Capital (www.gencm.com), a Dallas-based investment bank, was the financial advisor to Discount Drainage. “Finding a group that would maintain the well-established high operational standards of the company and its employees was of the highest importance to the owners of Discount Drainage,” said Tom Staszak, a Senior Managing Director at Generational Capital. “David and his team at Foundation Investment Partners, being Ohio-based, were a perfect fit.”

© 2018 Private Equity Professional | April 25, 2018

Opus Equity Partners, the private equity arm of Opus Bank, has made an equity investment in Simplex Construction Supplies to fund the acquisition and subsequent merger with JC Supply & Manufacturing. Opus will partner with Sarah Bazey, the owner and CEO of Simplex, to integrate Simplex’s distribution business with JC’s manufacturing operations.

Simplex, headquartered in Minneapolis, is a distributor of construction products that has been serving contractors in the commercial, heavy and highway, and stucco markets for 30 years. JC Supply & Manufacturing has distributed construction chemicals and produced steel reinforcing products into the highway market for the past 20 years. The company has facilities in Ontario, CA, and Carlyle, IL.

The newly merged company is now a vertically integrated manufacturer and supplier of infrastructure products and services to bridge and paving contractors across America. The combined operations will have a total of 260,000 square feet of warehousing and manufacturing space and 20 acres of capacity across three locations in Ontario, CA (Los Angeles); Carlyle, IL (St. Louis); and Minneapolis.

“We are enthusiastic to partner with such a highly accomplished CEO in Sarah Bazey, who brings 30 years of infrastructure experience with a focus on bridges and highways,” said Dale Cheney, Managing Partner of Opus Equity Partners. “Sarah brings a wealth of industry knowledge and professional relationships that will enable Simplex and JC to successfully expand into additional geographic areas and product offerings.”

“The Fixing America’s Surface Transportation Act (FAST Act) authorized $305 billion in spending over fiscal years 2016 through 2020,” said Ms. Bazey. “The combination of JC and Simplex, and the competitive advantage of a vertically integrated organization with a commitment to product quality and customer service, positions us well to play a leadership role in reinforcing America.”

Opus Equity Partners is the private equity arm of Opus Bank and makes growth equity investments in profitable lower middle market companies that have revenues generally between $10 million to $150 million and EBITDA greater than $2 million. Sectors of interest include consumer, healthcare, business services and manufacturing. The firm is based in New York (Opus Equity Partners).

Opus Bank (NASDAQ:OPB), with approximately $8 billion in total assets, was founded in September 2010 when a group of investors led by our Founding Chairman, Chief Executive Officer and President, Stephen Gordon, completed the acquisition and recapitalization of Bay Cities National Bank, a community bank headquartered in Redondo Beach, CA, with an injection of over $400 million of new equity. Bay Cities was subsequently converted to a California-chartered commercial bank, regulated by the FDIC and the State of California, and renamed Opus Bank. The bank is headquartered in Irvine, CA (www.opusbank.com).

Opus Financial Partners, Opus’ registered broker-dealer subsidiary, raised senior and subordinated debt financing to support the transaction.

© 2017 Private Equity Professional | March 31, 2017