Kodiak Building Partners acquires Great West Drywall Supply
Denver-based Kodiak Building Partners has acquired Great West Drywall Supply, a specialty distributor of drywall, steel framing, ceilings and accessories to contractors in the greater Denver market. The purchase price was not disclosed.
“We are very excited about bringing Todd Mills and the Great West team into the Kodiak portfolio,” said Kodiak CEO Paul Hylbert. “We expect the distribution of drywall and accessories to be a core part of our future growth.”
Great West has been privately owned by a small group of investors since its founding in 2002. The decision by the former ownership group to concentrate its efforts on its other portfolio investments led to the opportunity to sell the business to Kodiak.
“We’re pleased with the sale of our Great West business, in that it will allow us to concentrate on our much larger contracting business, maintain a supply relationship with Kodiak, and ensure that our people have the on-going support of an owner with a desire to grow this business,” said Denis Dieker, managing member and treasurer for the investment group.
The business will be moving to Barton Supply’s 20-acre facility in Aurora, Colo., from its current location in Greenwood Village, Colo. Todd Mills and his team will stay on as management.
In conjunction with the deal, Kodiak announced an expanded senior credit facility with Chicago-based Cole Taylor Business Capital. This facility will support the continued growth of Kodiak’s existing portfolio companies and future acquisitions.
Kodiak Building Partners is a private investment group with a focus on building products distribution. The company’s first investment, Barton Supply, serves professional builders and general contractors out of three locations along the Colorado Front Range with reinforcing products, structural steel and accessories. In July, Kodiak announced the purchase of Gulf and Basco, a specialty distributor of cabinets, appliances and windows serving the greater Houston market.
Remodeling activity hits new high in August
The number of residential remodeling projects hit a new benchmark in August, registering 3,204,000 on a seasonally adjusted basis, the highest since April 2008, according to an index compiled by BuildFax, a national database of building permit data. On a monthly basis, residential remodels rose 3% in August 2012 compared with the previous month. Year over year, August 2012 showed a 5% growth rate, measured on a seasonal basis, compared with August 2011.
Annual rates of remodeling authorized by building permits across the country in July 2012 were estimated as follows: Northeast, 895,000 (down 4% from July and up 20% from August 2011); South, 1,302,000 (down 3% from July and up 21% from August 2011); Midwest, 588,000 (up 5% from June and down 7% from August 2011); and West, 832,000 (up 3% from July and down 4% from August 2011).
Co-headquartered in Austin, Texas, and Asheville, N.C., BuildFax, a division of BUILDERadius, maintains a national database of historical building permit data. It also operates a proprietary property intelligence engine that contains building and permitting information from more than 4,000 cities and counties throughout the country.
Boise Cascade releases preliminary results
In an Oct. 15 filing with the Securities and Exchange Commission (SEC), Boise Cascade Holdings posted an estimate of the results for its third fiscal quarter, which ended Sept. 30, 2012.
Segment sales in the building materials distribution division were between $595 million and $615 million, with wood products accounting for another $255 million to $265 million. Net income was reported at $21.5 million to $25.1 million.
The Boise, Idaho-based company also announced the commencement of a senior unsecured note offering of up to $250 million. The company said it intends to use the proceeds to fund the redemption of all of its outstanding senior subordinated notes. The remaining proceeds from the senior notes, which are due 2020, will be available for general corporate purposes.
Boise Cascade is a privately held company that distributes and/or manufactures a number of building materials, including engineered wood products, plywood, lumber and roofing materials.