Monomoy Capital Partners Acquires Construction Resources, Inc. and Builder Specialties, Inc.

NEW YORK, NEW YORK (January 4, 2015) — Monomoy Capital Partners, a private equity firm focused on deep value investing and operational improvement in the lower middle market, announced today that it has acquired Construction Resources, Inc. and Builder Specialties, Inc. from their owner-operators. Terms of the transaction were not disclosed.

The combination of the two businesses under the Construction Resources name creates a leading specialty building products distributor for home builders in the Southeast. The company fabricates, distributes and installs countertops, appliances, hearth products, garage doors, glass and mirror products, flooring products, lighting products and cabinets. Construction Resources is now positioned as the largest ‘one-stop shop’ for specialty building products in the Southeastern US. The Company employs over 700 associates in 30 distribution centers, design centers and showrooms located throughout the Southeast.

Mitch Hires and David Haun, the owner-operators of the two underlying businesses, are investing in the combined company and will serve as the Chief Executive Officer and President of Construction Resources going forward.

“We are excited to welcome Construction Resources to the Monomoy portfolio,” said Justin Hillenbrand, a partner and Co-Executive Officer at Monomoy. “Mitch Hires and David Haun have built the two companies we acquired in this transaction into leading specialty suppliers to home builders with an impressive customer list and an unmatched reputation for quality and service. We look forward to working with the Construction Resources management team to integrate the two businesses and to improve customer service, product quality and geographical reach.”

“We see a significant opportunity to expand and grow our business as the housing market continues to improve, particularly in greater Atlanta and surrounding regions,” said Mitch Hires, the Chief Executive Officer of the new Company. “Monomoy brings Construction Resources a unique combination of financial and operational capabilities, and we are convinced that the Monomoy team is the right partner to help take Construction Resources to the next level of excellence for our customers, suppliers and employees.”

Monomoy acquired Construction Resources through its second fund vehicle, Monomoy Capital Partners II, L.P. Garry Jaunal and Edward West from Baker & McKenzie, LLP provided Monomoy with legal counsel in the transaction and Mike Sullivan from Grant Thornton LLP completed financial and accounting diligence. Bank of America and LBC Credit Partners provided financing for the transaction.

About Monomoy Capital Partners

Monomoy Capital Partners is a private equity firm with over $1 billion in committed capital that makes controlling investments in lower middle market businesses in the manufacturing, distribution, consumer products and foodservice sectors. Over the past ten years, Monomoy has closed over 40 middle market acquisitions, and its companies have produced over $2.5 billion in combined sales and employed more than 5,000 associates across four continents. Monomoy implements customized business improvement programs at its investments that reduce operating expenses, increase profitability and encourage growth. To learn more about Monomoy and its portfolio, please visit the firm’s website at www.mcpfunds.com.

Since forming the firm in 2005, Monomoy has grown its staff from three founders to a firm of 25 world-class investment and operating professionals. A 2015 study by Preqin, the leading source of data on the alternative assets industry, named Monomoy Capital Partners II, L.P. the best performing distressed private equity fund raised between 2006 and 2012 and the second best performing distressed private equity fund raised since 1990. Access the 2015 Preqin Alternative Assets Performance Monitor at www.preqin.com.

About Construction Resources

Construction Resources is the combination of two owner-operated distributors to home builders in the Southeast region of the United States. Builder Specialties, Inc. (“BSI”) is a distributor and installer of appliances, garage doors, hearth products and lighting products. BSI operates 11 distribution centers, design centers and showrooms in greater Atlanta, the Florida panhandle and South Florida. Construction Resources, Inc. (“CR”) is a fabricator, distributor and installer of countertops, glass products, flooring products and cabinets. CR operates 19 distribution centers, design centers and showrooms in Georgia, Florida, South Carolina and Alabama.

Headquartered in Decatur, Georgia, the combined business provides a full portfolio of home products and installation services to national home builders, regional home builders and general contractors throughout the Southeast.


Media Contact:
Erica Barsch
Sloane & Company
(212) 446-1875

Monomoy Capital Partners Portfolio Company ContMid Holdings Completes Successful Recapitalization

NEW YORK, NEW YORK (Dec. 17, 2015) — Monomoy Capital Partners, a private equity firm focused on deep value investing and operational improvement in the lower middle market, announced today that its portfolio company, ContMid Holdings, Inc., completed a successful
recapitalization with its existing lenders. The proceeds of the recapitalization were used to fund the third dividend paid to ContMid’s shareholders in 2015.

In total, the company’s 2015 dividend payments have returned all of the capital invested in the July 2014 acquisition of ContMid plus a substantial profit for ContMid’s shareholders. Following the recapitalization, ContMid remains conservatively capitalized and positioned for growth with the continued support of Monomoy, a private equity firm with over $1 billion of assets under management. Monomoy, its co-investors and the ContMid management team will continue to own 100% of the business following the recapitalization.

“ContMid’s financial performance has significantly exceeded our expectations over the first 16 months of Monomoy ownership,” said Phil Johnson, the Chief Executive Officer of ContMid. “With the support of the Monomoy team, we have executed a comprehensive business
improvement program focused on providing our customers with manufacturing excellence, best-in-class product quality and industry-leading service. Today’s recapitalization validates ContMid’s transformation under Monomoy’s ownership, and our conservative capital structure plus the support of our owners will allow ContMid to grow with our customers over the coming years.”

Monomoy owns ContMid through its second fund vehicle, Monomoy Capital Partners II, L.P. Bank of America and Medley Capital provided ContMid with incremental financing for the recapitalization. Kirkland & Ellis, LLP served as legal counsel to ContMid in the transaction.
About Monomoy Capital Partners Monomoy Capital Partners is a private equity firm with over $1 billion in committed capital that makes controlling investments in lower middle market businesses in the manufacturing, distribution, consumer products and foodservice sectors. Over the past ten years, Monomoy has closed over 40 middle market acquisitions, and Monomoy companies have produced over $2.5 billion in combined sales and employed more than 5,000 associates across four continents. Monomoy implements customized business improvement programs at its investments that reduce operating expenses, increase profitability and encourage growth. To learn more about Monomoy and its portfolio, please visit the firm’s website at www.mcpfunds.com. 

Since forming the firm in 2005, Monomoy has grown its staff from three founders to a team of 25 world-class investment and operating professionals. A 2015 study by Preqin, a leading source of data on the alternative assets industry, named Monomoy Capital Partners II, L.P. the
best performing distressed private equity fund raised between 2006 and 2012 and the second best performing distressed private equity fund raised since 1990. Access the 2015 Preqin Alternative Assets Performance Monitor at www.preqin.com.

About ContMid, Inc.

ContMid is a market leader in the design, manufacturing and distribution of custom-engineered metal fasteners to automotive OEMs, Tier I automotive suppliers and industrial manufacturers. The Company produces internally- and externally-threaded nuts and bolts, screws and door strikers and related products for automotive vehicle systems, including restraint systems, airbags, door hardware, and ride control systems. ContMid is the leading provider of Taptite® products, Torx® products and wheel nuts in North America. The company is headquartered in Park Forest, Illinois and operates six manufacturing facilities throughout the Midwest. Please visit www.contmid.com for a detailed description of ContMid and its product line.


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Media Contact:
Erica Barsch
Sloane & Company
(212) 446-1875

Monomoy Capital Partners Hires Phil Arra To Expand The Firm's Transaction Sourcing Team

NEW YORK, NEW YORK (December 1, 2015)—Monomoy Capital Partners, a private equity firm focused on deep value investing and operational improvement in the lower middle market, is pleased to announce that Phil Arra has joined the firm as a Managing Director and the Head of Business Development. Mr. Arra will focus on sourcing Monomoy investments from corporate sellers, family owners, specialized intermediaries and other business owners.

Mr. Arra has over 20 years of private equity and investment banking experience in the middle market. He joins Monomoy from Terra Verde Partners, a private investment firm focused on acquiring businesses in the environmental sector. Before founding Terra Verde, Mr. Arra was a
Managing Director with Hunt Special Situations Group where he focused on corporate divestitures, restructuring and turnaround investments. Prior to his tenure at Hunt, Mr. Arra worked in J.P. Morgan's mergers and acquisitions practice and at KSL Fairways, an operationallyfocused
private investment affiliate of Kohlberg Kravis Roberts & Co. Mr. Arra holds an M.B.A. from The Wharton School of the University of Pennsylvania and a B.B.A. in Finance from James Madison University. He also holds a Chartered Financial Analyst designation.

Daniel Collin, a Monomoy partner and its Co-CEO, commented, “The principals of Monomoy have had the pleasure of working with Phil on multiple investments over the past 15 years. Phil brings a unique focus and network to the Monomoy platform, and we are confident that he will help the firm source a growing number of acquisition opportunities in the lower middle market. We are excited to welcome Phil as a member of the Monomoy team.” 

“Monomoy has built an impressive platform that combines deep value investing with a unique approach to operational improvement and value creation,” said Mr. Arra. “Monomoy has a proven track record of closing complex middle market transactions with a variety of sellers, and I look forward to working with the team to expand the firm’s sourcing activity in the coming years.”

About Monomoy Capital Partners

Monomoy Capital Partners is a private equity firm with over $1 billion in committed capital that makes controlling investments in lower middle market businesses in the manufacturing, distribution, consumer products and foodservice sectors. Over the past ten years, Monomoy has
closed over 40 middle market acquisitions, and its companies have produced over $2.5 billion in combined sales and employed more than 5,000 associates across four continents. Monomoy implements customized business improvement programs at its investments that reduce
operating expenses, increase profitability and encourage growth. To learn more about Monomoy and its portfolio, please visit the firm’s website at www.mcpfunds.com. 

Since forming the firm in 2005, Monomoy has grown its staff from three founders to a firm of 25 world-class investment and operating professionals. A 2015 study by Preqin, the leading source of data on the alternative assets industry, named Monomoy Capital Partners II, L.P. the best performing distressed private equity fund raised between 2006 and 2012 and the second best performing distressed private equity fund raised since 1990. Access the 2015 Preqin Alternative Assets Performance Monitor at www.preqin.com.


Media Contact:
Erica Bartsch
Sloane & Company
(212) 446-1875