Building Products Acquisitions in 2018

Construction Supply Group (CSG), a portfolio company of The Sterling Group, has acquired MASONPRO, a Northville, Michigan-based distributor of specialty masonry materials. The transaction is an add-on acquisition that expands CSG's footprint and product offering in the masonry and concrete accessories market.

American Construction Source (a Clearlake portfolio company), together with Angeles Equity Partners, acquired Arrow Building Center (also known as Consolidated Lumber Company) from Aiglon Capital. Based in Stillwater, Minnesota, Arrow operates 16 branches across Wisconsin and Minnesota and serves more than 1,000 professional contractors, home builders and DIY customers; the deal was an add-on to ACS’s platform to expand its Midwest footprint.

CHRYSO has acquired EUROMODAL, a Portuguese family-owned manufacturer of construction chemicals based near Porto. The acquisition expands CHRYSO's local production and technical capabilities in Portugal, increases its product mix for concrete and cement applications, and appoints EUROMODAL CEO Francisco Araújo as General Manager of CHRYSO Portugal. Financial terms were not disclosed.

Pella Mid-Atlantic has acquired K.C. Company, a Beltsville, Maryland-based independent distributor of Pella windows and doors, from sole shareholder Kevin Cassidy. The acquisition expands Pella Mid-Atlantic’s regional footprint and combines K.C. Company’s showroom, sales and installation capabilities with the buyer’s existing Mid-Atlantic operations.

CHRYSO has signed an agreement to acquire certain operating business divisions and assets of Italian chemicals manufacturer RUREDIL S.p.a., covering concrete admixtures, cement additives, technical mortars, fibers and products for decorative concrete and restoration (excluding the Rurmec brand and the structural reinforcement division). The consideration was not disclosed; trade unions are being consulted and completion is expected over the summer subject to customary conditions precedent.

Hardwoods Distribution Inc., via its U.S. subsidiary Rugby Holdings LLC, purchased certain distribution assets of Atlanta Hardwood Corporation for US$3.7 million. The acquired operations — including Hardwoods of Atlanta, Hardwoods of North Georgia and Hardwoods of Alabama — will be consolidated into Hardwoods’ existing Atlanta and Suwanee facilities and operate under HDI’s Rugby brand, adding about US$13 million of annual sales.

Hultafors Group AB, a subsidiary of Investment AB Latour, has acquired Johnson Level & Tool Mfg. Co., Inc., a Mequon, Wisconsin–based manufacturer of levels, lasers and layout tools. The deal strengthens Hultafors Group's presence in North America by adding Johnson's product portfolio and distribution network; the company was sold by founders/previous owners Bill and Bob Johnson.

ASSA ABLOY has acquired Concept Frames, Inc., a Newton, North Carolina-based manufacturer of custom-made steel doors and frames. The deal — adding Concept Frames' manufacturing capability, customer relationships in the U.S. Southeast and about 68 employees — strengthens ASSA ABLOY's leadership in the door and frame category in North America.

Q.E.P. Co., Inc. has acquired Ace Flooring, Inc., doing business as Naturally Aged Flooring, a Moorpark, California–based hardwood flooring manufacturer, importer and distributor. Naturally Aged Flooring serves a national customer base of more than 2,500 mostly independent retailers; the transaction was announced by advisor Woodbridge International on May 9, 2018.

SRS Distribution, Inc. has acquired W.E.B., Inc., which does business as Contractors Siding, Windows & Roofing Supply, an Omaha-based building products distributor with locations across Nebraska and Sioux Falls, South Dakota. Bridgepoint Investment Banking served as the sell-side advisor; terms were not disclosed.

River Associates Investments, LP has acquired Quikserv Corp., a Houston-based manufacturer of transaction windows and drawer systems. Financial advisor Brown Gibbons Lang & Company represented Quikserv; transaction terms were not disclosed.

Andersen Corporation acquired Heritage Windows and Doors, a Gilbert, Arizona-based manufacturer of high-performance aluminum windows and doors serving luxury residential and commercial markets. The acquisition expands Andersen's Architectural Collection, advanced manufacturing capabilities and geographic reach; Heritage was owned by Tashco Industries, Inc. and financial terms were not disclosed.

Chicago-based private equity firm Wind Point Partners has acquired Ox Engineered Products, the specialty manufacturer of laminated fibrous board sheathing and polyiso foam sheathing products formerly part of Ox Industries. Wind Point will partner with industry executive Dave Ulmer to grow Ox organically and via complementary add-on acquisitions, with financing provided by funds managed by PennantPark Investment Advisers and Eaglehill Advisors.

Beacon Roofing Supply (NASDAQ: BECN) has acquired RCI Roofing Supply Company, Inc., a family-owned wholesale distributor of residential and non-residential roofing and building supply products. Bridgepoint Investment Banking served as the sell-side advisor representing the Lynch family in the transaction, which Beacon says will broaden its product offering and customer reach in the building-products distribution market.

Gemini Investors, a Massachusetts-based private equity firm, has acquired Perma-Patch, Inc., a Baltimore-based manufacturer of cold patch asphalt repair material. Chesapeake Corporate Advisors served as exclusive financial advisor to Perma-Patch, and the transaction provides an exit for the company’s shareholders while positioning Perma-Patch for operational improvement under Gemini's ownership.

Oklahoma City-based M-D Building Products has acquired the assets of Seattle-based Morse Industries, a family-run manufacturer of railings, shower enclosures and architectural metals. The acquisition adds three distribution facilities, expands M-D's aluminum and vinyl extrusion capabilities and broadens its product portfolio and geographic reach across North America, Europe and the Pacific Rim.

High Road Capital Partners has acquired U-C Coatings, LLC, a Buffalo-based manufacturer and distributor of proprietary wood protection coatings, from existing private equity owners Argosy Private Equity and Sidereal Capital Group. Financial terms were not disclosed; the deal positions High Road to support continued product development, channel expansion, and growth for U-C Coatings' branded offerings such as ANCHORSEAL, GEMPAINT and Seal-Once.