Former Wolseley exec joins private equity group
Chip Hornsby, former president and CEO of Wolseley, has joined Advent International’s Operating Partner Program. Hornsby will advise Advent, a global investment and corporate buyout firm, on opportunities in the distribution and building products sector. Hornsby will principally work with Advent’s U.S. deal team, which is looking to invest up to $1 billion of equity capital, according to an Advent spokesperson.
Hornsby served as president and CEO of Wolseley, the former parent company of Stock Building Supply, from 2006 to 2009. Prior to that, Hornsby was the president and CEO of Ferguson Enterprises, Wolseley’s plumbing supply distribution business in North America. He drove sales expansion from $3 billion to $9 billion during his five-year tenure at Ferguson, where he began his career and worked for 27 years.
Hornsby serves on the board of directors for Goodman Global, a $2 billion manufacturer and distributor of HVAC equipment, and Univar Inc., a $7 billion chemicals distributor. He is the former chairman of the National Association of Wholesaler-Distributors.
Advent International has been an active investor in building products, distribution and construction supply for more than 20 years, and has invested in more than 20 companies in these sectors. Most recently, Advent purchased a majority share of Bradco Supply in 2008 and subsequently sold it to ABC Supply in 2010.
RPM swings to profit in third quarter
RPM International, the maker of Rust-Oleum, DAP, Zinsser and other building products, reported $1.9 million in net income for its third fiscal quarter, swinging from a loss of $9.4 million in the same quarter of 2010.
Sales for the Medina, Ohio-based manufacturer were $679 million for the third quarter, compared with $666.5 million a year ago.
RPM deconsolidated its specialty products unit at the end of its previous fiscal year on May 31, 2010. This eliminated about $300 million in annual revenue from the company’s industrial segment in June.
“Nearly all of our business units generated strong sales increases and substantially stronger growth in earnings," said chairman and CEO Frank Sullivan. He noted improved demand for products in the commercial construction markets, both domestically and in Europe. High-performance industrial coatings, maintenance products and polymer flooring systems are also performing well, Sullivan said.
"Our consumer lines benefited from the gradual economic recovery, consumer acceptance of new product introductions and market share gains achieved during the recent downturn," he added.
Builders, LBM dealers win one in Central Florida
Lobbying by local builders and lumberyard owners resulted in a one-year moratorium on school-impact fees in Lake County, Fla., according to an article in the Orlando Sentinel.
Lake County commissioners voted unanimously this week to suspend the collection of the fees — estimated at $9,324 per single-family house — until April 1, 2012. The local school board had asked for a six-month moratorium.
The commissioners, who earlier suspended the collection of impact fees to build and improve roads, heard testimony from various members of the construction industry, including Don Magruder, CEO of Ro-Mac Lumber & Supply in Leesburg, Fla. Magruder, who chairs a group called Citizens for Better Government, cited the area’s 11.5% unemployment rate in arguing against the education impact fees, which would “[kill] job creation through loss of projects," he said.