Building Products Acquisitions in 2019

Royal Baths Manufacturing Company, Ltd. acquired Clearwater, Florida-based Quality Acrylic Baths Inc., adding manufacturing capacity and unique tub designs to Royal's product offering. Royal, a portfolio company of Cotton Creek Capital, said the deal will expand service capabilities across the Southeast (Florida, Georgia and the Carolinas).

IK Investment Partners' IK VIII Fund has agreed to acquire a majority stake in MDT technologies GmbH from the company's founders. MDT is a German manufacturer of KNX-based building automation products; IK intends to support the company's next growth phase and international expansion while maintaining focus on product innovation.

USA Millwork has acquired Mission Bell, a California-based architectural millwork and custom casework manufacturer founded in 1959. The deal expands USA Millwork’s national platform to five locations, adds West Coast capacity and capabilities, and brings Mission Bell CEO Glenn Ripley into the combined company leadership as president.

The Recreational Group, a Dalton, Georgia–based provider of residential and commercial surfacing products, has acquired Swisstrax, a California–based maker/distributor of plastic modular garage and event flooring. In a separate deal the company also acquired Speedway Tile; the purchases expand The Recreational Group's modular flooring portfolio and allow it to bring a majority of Swisstrax production in-house.

Norwegian lighting group Glamox has acquired 98.21% of shares in Polish lighting manufacturer ES‑SYSTEM via a public tender, valuing the company at about 150 million PLN. The deal gives Glamox a leading position in the Polish professional lighting market and expands its product range and geographic footprint in Central Europe.

Builders FirstSource purchased the assets of Raney Components and Raney Construction, two Groveland, Florida-based providers of prefabricated wall panels, roof trusses and installation services. The deal adds vertically integrated manufacturing and installation capabilities to Builders FirstSource's platform and brings approximately $140 million of annual revenue and Raney's team into the BFS footprint.

Controlled Products, a Clearview Capital‑backed manufacturer and distributor of synthetic turf, has acquired a majority stake in Purchase Green (including Path to Prosperity, LLC). The transaction closed in November 2019 and included a significant reinvestment by Purchase Green's management, which will remain in place to run the business; the deal expands Controlled Products' distribution footprint and product offerings across North America.

SRM Concrete has acquired Conroe Concrete (doing business as Yancey Ready-Mix), a family-owned ready-mix concrete manufacturer based in Conroe (north Houston), Texas. The acquisition expands SRM's footprint in the Houston/North Texas market; terms were not disclosed and ClearRidge advised the sellers (Bobby and Jo Ann Yancey).

Huntsman Corporation announced an agreement to acquire Icynene-Lapolla from an affiliate of FFL Partners for $350 million in an all-cash transaction. Icynene-Lapolla is a North American manufacturer and distributor of spray polyurethane foam insulation with ~ $230 million in annual revenues and manufacturing facilities in Houston, Texas and Mississauga, Ontario; the deal was positioned to expand Huntsman's downstream insulation capabilities and global spray-foam offering.

Valesco Fund II completed a majority buyout and control recapitalization of Express Home Services, LLC ("Express Flooring"), a Phoenix-based regional provider of residential and commercial flooring solutions. Co-investors on the transaction included Brookside Mezzanine Partners (providing subordinated debt and an equity co-investment), HighGrove Companies, Longhouse Partners and Express management; senior debt was provided by a bank investor in Valesco Fund II to support growth and geographic expansion.

Toronto-based private equity firm Lynx Equity Limited has acquired Prime Flooring LLC, a full-service commercial flooring and equipment rental company based in Ephrata, Washington. The deal is an add-on to Lynx's existing flooring portfolio (including G&W Commercial Interiors); Prime's co-founders Tanner and Shanel Halley will remain with the company post-transaction.

Cairngorm Capital Partners has acquired Grant & Stone Limited, a High Wycombe–based independent builders' merchant, and its ecommerce subsidiary Trading Depot UK Limited from the founding shareholders. The private equity firm will support management with capital and strategic guidance to expand the business via new branches and add-on acquisitions across the Thames Valley.

ACProducts, Inc. (acpi), a PE-backed cabinet manufacturer, has agreed to acquire Masco Cabinetry, a division of Masco Corporation. The add-on purchase expands acpi's product offering and manufacturing capabilities—bringing approximately 4,000 Masco Cabinetry associates into the acpi organization—and is expected to close by the end of Q1 2020.

Oracle Elevator, a Tampa-based independent elevator and escalator service provider backed by family office investors, has acquired Duncan Entrance Systems, a South Florida automatic door installation, repair and modernization company. The deal expands Oracle's service capabilities into automated building entrances across its 42 U.S. service markets; Duncan's staff will be retained and founder Justin Duncan will lead the new Entrance division.

Monomoy Capital Partners’ platform Construction Resources — through its United Materials (UMI) division — acquired Any Old Stone, a family-owned distributor of natural and quartz surfacing based in Jacksonville, Florida. The add-on expands Construction Resources’ surfacing distribution footprint in the Southeast, increasing market share in Florida and extending coverage into Northern Florida and Southern Georgia.

Sound Seal Holdings, a portfolio company of The Stephens Group, has acquired Lamvin, Inc., a California-based manufacturer of fabric-wrapped architectural acoustical panels. The deal expands Sound Seal's product portfolio and gives the company a West Coast manufacturing presence to better service reps, distributors and customers nationwide.

WILsquare Capital formed Crown Products, Inc. and completed the acquisition of Cartwright Distributing, LLC, a Denver-based flooring distributor. The new Crown Products platform combines Cartwright with WILsquare portfolio company Walcro to expand product offering and geographic reach across the Upper Midwest and Rocky Mountain regions; terms were not disclosed.

Tnemec Company, Inc., a manufacturer of architectural and industrial protective coatings, has purchased the assets of Textured Coatings of America, Inc. (Tex•Cote). Tnemec said it will provide operational and managerial support to grow Tex•Cote's product lines and expand within its existing commercial, residential and DOT markets.

GHK Capital Partners, a Greenwich, Connecticut-based private equity firm, completed the acquisition of Dura Supreme Cabinetry from the company's second-generation founding family. Dura Supreme is a vertically integrated manufacturer of premium semi-custom and custom cabinetry based in Howard Lake, Minnesota; GHK said the investment will support the company's operating platform and accelerate strategic growth into new U.S. markets.

Dallas-based private investment firm Elm Creek Partners sponsored a change-of-control acquisition of Buda Woodworks, a custom architectural millwork manufacturer based in Buda, Texas. Elm Creek partnered with industry executive J.J. Barto to support the company's transition and expansion into new geographic markets and service lines; financing was provided by LegacyTexas Bank and a private family office.

Cairngorm Capital has acquired Chandlers Building Supplies Limited and will merge it with its existing builders' merchant brands Parker Building Supplies (Parkers), Stamco and Fairalls to form the Independent Builders' Merchant Group. The enlarged business will operate 37 branches across the Midlands and South East with combined revenues of £180 million and over 750 employees; Chandlers contributes 14 branches, approximately £60 million in revenue and over 230 employees.

Artisan Design Group, a portfolio company of The Sterling Group, has acquired Dixie Carpet Installations, a Texas-based provider of flooring installation and replacement services for multi-family properties. The add-on expands ADG’s relay/replacement capabilities and strengthens its footprint across key Texas markets including Houston, Austin, Dallas, San Antonio and Corpus Christi.

Greybull Stewardship and Gemstone Capital acquired Ada Sand & Gravel, Inc., a family-owned supplier of sand and gravel based in Boise, Idaho. The transaction, announced by sell-side advisor Woodbridge International, transfers the business (est. operating from a 50-acre gravel pit since 1961) to the two investor groups as a family-owner exit.

Pella Corporation has acquired Custom Window Systems, Inc., a vinyl window and door manufacturer headquartered in Ocala, Florida, from private equity firm Nautic Partners. Custom is a leading Florida manufacturer of impact‑resistant windows and doors sold primarily through dealer channels, and the deal expands Pella's capabilities and presence in Florida and other coastal hurricane zones.

US LBM Holdings, LLC acquired Forge Lumber, a Cincinnati-area building materials supplier and mill operator based in Erlanger, Kentucky. The purchase from the Steinman family adds Forge’s manufacturing (doors, stairs, truss plant) and a Cincinnati distribution center to US LBM’s regional footprint, expanding its presence in Ohio, Kentucky and Indiana.

Construction Supply Group, a portfolio company of The Sterling Group, has acquired Construction Materials, a long-established wholesale distributor operating 16 branches across the Southeastern United States. The add-on expands CSG's geographic footprint in key MSAs such as Florida, Georgia, Alabama and Texas and strengthens its ability to serve concrete and masonry contractors.

Orkla House Care (part of Orkla ASA) has acquired the remaining 50% stake in joint venture Anza Verimex Holding B.V. from PGZ International B.V., making the Benelux painting-tools business a wholly owned part of Orkla. The transaction covers Anza Verimex Holding B.V. (Netherlands) and its subsidiaries PGZ Nederland B.V. (Netherlands) and Anza Verimex NV (Belgium); the group reported aggregate 2018 revenues of ~EUR 20 million and around 10 employees, and will operate as Orkla House Care Benelux.

Industrial Opportunity Partners' portfolio company Union Corrugating Company has acquired Oakland Metal Buildings. Oakland will operate as a plant location supporting the Union platform, increasing Union's manufacturing capacity and providing a foothold in the Alabama market; terms were not disclosed.

Arcapita’s portfolio company MC Group acquired Icon Identity Solutions, a leading U.S. signage and brand-implementation company, from Merit Capital Partners in August/September 2019. The acquisition expands MC Group’s service offering and national footprint—combining MC’s energy services with Icon’s interior, remodel and signage capabilities—while keeping Icon’s Rolling Meadows, Illinois office as a secondary operations base.

Denver Glass Interiors, a portfolio company of Baymark Partners, acquired Bel Shower Door Corporation. The acquisition adds Bel's custom shower and mirror fabrication and installation capabilities to DGI's regional glazing platform and is positioned as an add-on to Baymark's portfolio.

Hahn Systems, a U.S. wholesale distributor and subsidiary of French family group Descours & Cabaud, has acquired the construction division of American Machinery Works, Inc., which includes AMW Construction Supply, ProFast Supply, and King Fasteners. The acquisition expands D&C/Hahn’s footprint in the U.S. construction and industrial supply market while the acquired businesses will continue to operate under their current names.

Tenex Capital Management has acquired Wolf Home Products from Quad-C Management. Wolf, headquartered in York, Pennsylvania, is a long-established provider and distributor of branded kitchen and bath cabinetry, vanities, accent tiles, outdoor living and specialty building products serving dealers and builders across North America. Financial terms were not disclosed; Fidus Partners served as financial advisor to Wolf.

Acuity Brands, Inc. agreed to acquire The Luminaires Group from Sentinel Capital Partners in a transaction announced September 2019; terms were not disclosed. The Luminaires Group is a North American manufacturer of specification‑grade architectural lighting fixtures; Acuity intends to expand its product portfolio and capabilities in specification-grade lighting.

THI Investments, a pan‑European single‑family office, has acquired Belgium‑based RE Panels S.A. (parent of EPCO and TECSEDO) from The Riverside Company, with the RE Panels management team investing alongside THI. RE Panels, headquartered in Tournai, Belgium, is a European market leader in insulated sandwich panels for sectional overhead doors with automated manufacturing sites in Belgium, Poland and Switzerland; THI said it will support the business' next phase of growth and internationalisation.

Banner Solutions, a portfolio company of High Road Capital Partners, has acquired the assets of Specialized Builder's Hardware (SBH), a regional distributor headquartered in Anaheim, California. The add-on expands Banner Solutions' Southern California presence and customer base across education, government, healthcare, hospitality, and multi-family residential markets; financing was provided by Monroe Capital.

ACS American Construction Source (backed by Angeles Equity Partners and Clearlake Capital) acquired Contractor's Truss Systems, a Cotter, Arkansas-based engineered wood products manufacturer. The acquisition — the fifth for ACS in 11 months — adds a 40,000 sq. ft. component manufacturing facility to ACS's platform to expand component manufacturing capacity and better serve builders and contractors in the Ozarks region.

Construction Supply Group, a portfolio company of The Sterling Group, completed add-on acquisitions of Holdfast (Medway, Ohio) and Concrete Accessories & Rentals (Bozeman, Montana). The deals expand Construction Supply Group’s footprint in the Dayton, Ohio MSA and the Northern Rocky Mountain region and add capabilities including insulated concrete forms.

Sound Seal, a portfolio company of The Stephens Group, has acquired Flemington, New Jersey-based Acoustical & Tackable Surfaces, Inc. (ATS). The add-on strengthens Sound Seal’s architectural division by adding ATS’s acoustical wall and ceiling panel manufacturing and installation capabilities, with ATS founder Scott Randolph joining Sound Seal in a business development role.

Saugatuck Capital Company provided majority equity to acquire Lunada Bay Corp., a designer and manufacturer of high-end handcrafted glass, ceramic and concrete tiles, with Graycliff Partners supplying unitranche debt and Webster Bank as senior lender. The investment positions Lunada Bay to continue serving remodeling, architectural and design channels while partnering with existing management to drive growth.

NSi Industries, a portfolio company of Blue Sea Capital, has acquired Bridgeport Fittings, a Stratford, Connecticut-based supplier of high-performance electrical cable and conduit fittings. The deal expands NSi's product portfolio and distribution offering to electrical contractors and distributor partners, combining complementary product lines to drive growth.

Equistone Partners Europe has agreed to acquire Heras from CRH plc in a carve-out transaction; Heras' management will take a minority stake alongside Equistone. Headquartered in Oirschot, Netherlands, Heras is a leading European manufacturer of mobile and permanent perimeter protection systems with over 1,100 employees and more than €220 million in annual revenue. Equistone plans to grow Heras as a platform for consolidation and organic product and geographic expansion.

Mosaic Capital Partners announced an ESOP-backed acquisition of Boston Barricade Holdings, Inc., enabling founders Bob and Cynthia Putnam to provide liquidity and transition ownership to employees while retaining Bob Putnam as CEO. Boston Barricade is a nationwide provider of modular barricade systems, retail graphics and installation services headquartered in Vero Beach, Florida; Boxwood Partners served as the company’s financial advisor.

Cairngorm Capital Partners has acquired Fairalls (Builders' Merchants) Limited, adding it to its existing building merchant businesses Parkers Building Supplies and Stamco to create the largest independent builders' merchant group in the South East of England. The enlarged group operates 24 branches with over 500 employees and combined revenues of approximately £120 million; Fairalls itself reported c.£15m revenue and about 85 employees and will continue to trade under the Fairalls brand with Richard Fairall remaining involved during the transition.

DYWIDAG-Systems International, a Triton Fund III portfolio company, has acquired Polish permanent formwork and hydro-insulation specialist PARTEC System. The deal expands DYWIDAG’s Concrete Accessories manufacturing footprint in Poland and strengthens its distribution presence across Europe, particularly in its home territory and Scandinavia.

Dunes Point Capital (DPC) has made a controlling equity investment in Unified Door and Hardware Group, a value-add distributor of doors and hardware headquartered in Pennsauken, New Jersey. Dunes Point Capital Fund II provided the controlling equity while debt financing was provided by funds managed or advised by GSO Capital Partners LP and M&T Bank; Unified operates 15 locations across 10 states and employs approximately 500 people.

Sound Seal Holdings, a portfolio company of The Stephens Group, acquired Illinois-based Noise Barriers, LLC. Noise Barriers will operate as a stand-alone division of Sound Seal to expand Sound Seal's product portfolio and sales reach in the acoustical noise-control market; the company's founder will remain on as an adviser.

New Orleans-based private equity firm LongueVue Capital partnered with Soho founder Eli Mechlovitz to acquire Soho Studio Corp., now operating as TileBar, providing growth capital to scale the tile and specialty interiors retailer and distributor. TileBar, headquartered in New York City, operates an e-commerce platform, a NYC showroom, a large wholesale network and a major distribution facility and employs more than 150 people.

Kartell UK Limited has acquired Just Trays, a Leeds-based manufacturer of shower trays, from Maven Capital Partners, delivering a 2x return for VCT investors. The strategic purchase is expected to create significant synergies between the businesses and accelerate Just Trays' growth in the UK and international markets.

Wynnchurch Capital has acquired MPL Holdings, LLC, a Fairland, Indiana-based manufacturer of cultured marble bath products serving the hospitality and multi-family housing markets. Wynnchurch said it will partner with MPL's management to invest in the business and support the company's next phase of growth.

Monomoy Capital Partners' portfolio company Construction Resources has acquired United Materials, Inc. (UMI) as an add-on to expand its building products distribution footprint in Florida. The acquisition brings complementary countertop and surface offerings (quartz, natural stone, porcelain) to Construction Resources and advances the platform's strategy to scale in the Southeast and deepen exposure to the repair & remodel end market.