Bradco sold to private equity firm
Bradco Supply, the Avenel, N.J.-based distributor of roofing and other building materials, has sold a majority interest to Advent International, a private equity firm that specializes in buyouts and strategic restructuring.
Terms of the deal were not disclosed. The transaction is expected to close in mid to late August.
Ranked in seventh place on the Home Channel News Top 350 Pro Dealer List, Bradco reported total sales of $1.70 billion for 2007, a 12.5 percent drop from the previous year. Sales in the pro channel were $1.68 billion. Bradco operates 154 locations in 30 states.
Company founder Barry Segal, who announced his retirement five months ago, will now be free to focus his time and efforts on charitable endeavors, according to a letter posted on Bradco’s Web site. Segal’s sons, Brad and Martin, will remain part of the management team, the letter said, as will Ted Boylan, who will continue as CEO. The Segal family has retained a minority stake in the business.
Advent International, in its own announcement, said it intends to “work with existing management, and the Segal family [will] capitalize on Bradco’s leadership position, growing through acquisitions of complimentary businesses and regional expansion.”
Advent’s initial investment in Bradco and funding for follow up growth and acquisitions will come from its new $10.4 billion Global Private Equity VI fund, according to the firm, which has completed more than 10 investments in the building products and distribution sector worldwide.
Builder confidence hits record low
Builder confidence in the market for newly built single-family homes fell to a record low of 16 in July, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). It was the third consecutive month the index declined, and the 16 replaced the previous record low of 18 in June.
The index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as either “good,” “fair” or “poor.”
The HMI’s three components also hit record lows in July. The index gauging current sales conditions declined one point to 16; the index gauging sales expectations in the next months fell four points to 23, and the index gauging traffic of prospective buyers also receded four points to 12.
“Builders are reporting that traffic of prospective buyers has fallen off substantially in recent months,” said NAHB Chief Economist David Seiders.
All but one region showed declines in builder confidence in July. The Midwest declined 6 points to 10, its lowest HMI score since the regional detail was introduced in December of 2004, while the West matched a record low set in January 2008 with its three-point decline to 13. The South posted a one-point decline to 20. The Northeast was the only region to post a gain in July, rising two points to 14 from the previous month’s record low of 12.
NAHB president Sandy Dunn, a home builder from Point Pleasant, W.Va., advocated on behalf of the trade group for several additional reforms to help stimulate the housing market – namely, Congressional action on a housing bill that would provide a temporary tax credit of up to $8,000 for first-time home buyers, with the aim of “helping to stimulate sales, reduce the inventory of unsold homes on the market, stabilize house prices and arrest the rapid deterioration of mortgage credit quality.”
Universal Forest Products names new director
Universal Forest Products has named Bill Payne to its board of directors, effective April 2009, to replace outgoing board chairman emeritus Peter Secchia, who will retire next year.
Payne currently serves as chief of staff for Alticor Inc.; he formerly worked in sales and marketing at the company’s Amway Corp. branch.
“He brings well-cultivated business skills, a strong aptitude for strategy and an understanding of our company, business and culture,” said UFP executive chairman William Currie in a statement.
As chief of staff for Alticor, the parent company of Amway Corp., Quixtar North America / Amway Global Inc., Access Business Group LLC and Alticor Corporate Enterprises, Payne works with Alticor’s office of the CEO “on priority projects and oversees day-to-day management of the global Alticor enterprise,” according to a statement.
Universal Forest Products markets, manufactures and engineers wood and wood-alternative products for a number of home building and home improvement applications.