Kodiak forms new investment partnership
Kodiak Building Partners has formed a partnership with private equity firm Court Square Capital.
The move will fuel Kodiak’s ability to make additional acquisitions. According a press release issued by Kodiak, “Court Square has made a major investment in Kodiak to support both internal growth and expansion through acquisitions.”
Denver, Colo.-based Kodiak also announced that it has completed its acquisition of American Builders Supply, a pro dealer in Orlando, Fla. The move officially marks Kodiak’s expansion into Florida.
Regarding the partnership with Court Square Capital, Kodiak CEO Steve Swinney said, “We’ve been working on this combination with Court Square for some time now and feel that they are great partners for us. We share common values around maintaining strong customer-facing activities at the local level, the importance of a decentralized organization in our business, a broadly diversified product offering and giving back to our communities.”
Court Square said it has invested in more than 215 companies.
“We’ve had great support from our loyal investor group to get us to over $700 million in sales,” said Paul Hylbert, chairman of Kodiak Building Partners. “Now, with Court Square’s addition, we are excited about the opportunity to continue to build on Kodiak’s successful strategy and culture.”
Kodiak operates 53 locations in Arizona, Delaware, Colorado, Florida, Maryland, Massachusetts, Michigan and Texas.
BMD acquires Moehl Millwork
Home Factories Inc., a subsidiary of Building Materials Distributors Inc., has acquired Moehl Millwork.
Based in Ankeny, Iowa, Moehl Millwork is a wholesale distributor of millwork products, serving builders, contractors and pro dealers in the Kansas City metro area along with the entire state of Iowa. It supplies premium windows, doors, moulding and cabinets for commercial and residential projects, according to BMD.
“Moehl has created a strong brand name and reputation for exceptional service. We think the Moehl team will be a great addition to our employee owned culture,” said Jeffrey Gore, president and CEO of BMD. “Moehl adds to our already significant presence with strong channel partnerships that expand and strengthen our position and open up new markets and opportunities. The synergies in millwork product lines and in other specialty building product categories are significant and will bring additional value to current customers of Moehl and BMD.”
Donn Rudd, Moehl president and CEO, said that Moehl employees will have an opportunity for an ownership stake in the company with all employees and management remaining in place after the acquisition.
“Under this partnership, we will maintain and grow our existing business lines, and now be able to stretch into additional building product opportunities,” Rudd said.
Based in Galt, Calif., BMD is a manufacturer and distributor of specialty building products and millwork. Prior to the acquisition, the company maintained operations in six states including California, Colorado, New Mexico, North Carolina, Tennessee and Washington.
NLBMDA remains concerned over tax changes
Following the Senate’s passing of the Tax Cuts and Jobs Act, the National Lumber and Building Material Association remains about changes to state and local tax (SALT).
The new legislation will cease itemized deductions for state and local income and sales taxes, but allows individuals to deduct up to $10,000 for property taxes. According to the NLBMDA the code changes will have a negative impact on those living in areas with higher local and state taxes. The association also said it will be more difficult for businesses in those areas to retain and attract workers.
The bill also modifies mortgage interest deductions by eliminating the home equity loan interest deduction. Currently, interest payments on up to $100,000 of home equity loan debt are eligible for deduction. The NLBMDA said it supports the legislation retaining the deduction for interest payments on up to $1 million of mortgage debt, as well as the deduction for second homes.
The NLBMDA’s complete response to the Tax Cut and Jobs Act can be found here.