January 4, 2016
Monomoy Capital Partners Acquires Construction Resources, Inc. and Builder Specialties, Inc.
Company to Monomoy’s Portfolio --
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.
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