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.