Acquisition for Midwest Wholesale Hardware
Midwest Wholesale Hardware completed the acquisition of the assets of Strauss Lock Distributors. Financial terms of the deal were not revealed.
Based in Des Moines, Iowa, Strauss Lock Distributors is a distributor of residential door hardware and security products. In addition to its Des Moines headquarters, the company operates distribution centers in Phoenix, Arizona and Charlotte, North Carolina. SLD provides service and solutions for the residential builder market.
“SLD’s focus on the residential builder market and strength in the building products channel are tremendous complements to Midwest Wholesale Hardware’s extensive commercial and institutional offering,” said Scott Rubino, Principal, High Road Capital Partners. “In addition, Midwest will be able to extend SLD’s reach into several new geographic markets.”
“We’re excited to join the Midwest Wholesale Hardware team and have the company’s national distribution network behind us,” said Dan Swift, President, Strauss Lock Distributors, who will continue to lead SLD following the acquisition. “Our new partnership will provide access to resources and expertise that will take SLD to the next level.”
Midwest Wholesale Hardware was acquired by High Road in February 2017 and was the sixth platform company for High Road Capital Partners Fund II. Strauss Lock Distributors is the second acquisition completed by Midwest Wholesale Hardware under High Road’s ownership and follows the acquisition of Akron Hardware in October 2017.
New York-based High Road Capital Partners, which also owns General Tools and Instruments, has completed 46 transactions – 17 platform investments, 23 add-on acquisitions and six exits – since its founding in 2007.
Beacon Roofing Supply completes Allied acquisition
Beacon Roofing Supply, the Herndon, Va.-based roofing and building materials distributor, has completed its acquisition of Allied Building Products Corp.
In a press release, Beacon said the acquisition “further strengthens Beacon’s position as one of the largest publicly traded wholesale building materials distributors in the United States and Canada, with approximately $7 billion in revenue and 589 branches throughout all 50 states and six provinces in Canada.”
The deal was first announced last August with Beacon paying more than $2.62 billion in cash for Allied.
Beacon now becomes the fourth-largest wallboard and acoustical ceiling tile wholesale distributor in the nation, with more than $1 billion of revenue in the interior market category. The Allied acquisition also expands Beacon’s geographic footprint in New York, New Jersey and the upper Midwest, among other major U.S. markets.
“We are pleased to announce the completion of the Allied acquisition and we look forward to the successful integration of these two great companies,” said Paul Isabella, president and CEO of Beacon. “Beacon and Allied’s leadership have worked closely together on the integration planning to ensure a collaborative approach and an outcome that preserves the expertise and strengths of both organizations.”
In connection with the Allied acquisition, a fund managed by Clayton, Dubilier & Rice invested $400 million in Beacon and Nathan Sleeper, a CD&R partner, was appointed to Beacon’s board of directors, effective immediately. Sleeper previously was a member of Beacon’s board of directors from October 2015 through May 2016 in connection with Beacon’s previous acquisition of Roofing Supply Group from a fund managed by CD&R.
Robert R. Buck, chairman of Beacon’s board of directors, added: “Together, Beacon and Allied will have more than 150 years of combined experience providing service excellence in the building products industry. Having this unique opportunity to combine two great companies of this magnitude is a testament to the dedication and hard work of the people across both organizations.”
Last November, Beacon Roofing Supply reported fourth quarter 2017 net sales increased 9.8% to a company record of $1.29 billion, up from $1.17 billion in the fourth quarter of 2016. On the year as a whole, total sales increased 6% to an annual company record of $4.38 billion in 2017, from $4.13 billion in 2016.
BPI expanding into Wisconsin
Building Products Inc. is opening a new branch in Watertown, Wis.
In a press release, the distributor said the new location will help the company service current companies while expanding its coverage area. Based in Watertown, S.D., BPI also maintains distribution locations in Council Bluffs and Evansdale, Iowa; Sioux Falls, S.D.; and Fargo, N.D.
The Watertown location will distribute building materials in addition to exterior doors. A grand opening is planned for first quarter 2018.
“It is a very exciting time at BPI as we continue to grow and remain a strong supplier for our customers,” the company said in a prepared statement.
BPI’s operations also include a South Dakota millwork branch in Sioux Falls, which distributes a broad range of doors, windows and related millwork products to dealers throughout the Midwest.