OpenGate Capital said Tuesday it completed its buy of Bois & Matériaux. Wolseley plc is the seller. Financial terms weren’t announced but OpenGate said it is investing 25 million euros ($27.5 million) into the B&M business. Paris-based Bois is a business-to-business distributor of building materials in France.
LOS ANGELES & PARIS–(BUSINESS WIRE)–OpenGate Capital, a global private equity firm, announced today that it has completed the acquisition of the France-based business, Bois & Matériaux (“B&M”), a leading distributor of building materials, from Wolseley plc. In addition to the purchase price, OpenGate Capital is investing €25 million into the B&M business. Terms of the transaction were not disclosed.
B&M is one of the top three, business-to-business distributors of building materials in France and the second largest in Northern France. The business has two established brands: Réseau Pro and Panofrance. B&M also has a single-branch business, Guimier, a specialty supplier of architectural plaster moldings to the Parisian market. B&M distributes building materials to more than 12,000 trade customers in the residential market, evenly split between new-build and renovation projects. B&M is headquartered in Rennes, France, generates more than €600 million in revenue, operates from 138 sites, and has 2,500 employees.
Commenting on the acquisition, OpenGate Capital’s founder and Managing Partner, Andrew Nikou said, “We are incredibly excited to have acquired Bois & Matériaux today, yet another cross-border transaction for OpenGate. Since the inception of our firm, we have focused our attention on finding great businesses in Europe and North America with untapped potential. B&M is an example of a business that has the ideal operational characteristics, management team, and skilled employee base that will enable OpenGate to create new value.”
B&M is an important intermediary between a large number of suppliers and a wide, diffused customer base by providing a large inventory of products across many conveniently located sites across Northern France.
Sebastien Kiekert Le Moult, Partner at OpenGate Capital responsible for leading the transaction stated, “As we examined the B&M opportunity and saw that it had repositioned itself during the downturn in the French building and construction market, we viewed it as a testament to the long-term viability of the business. As we dug deeper into the business, we quickly recognized there were a lot of levers to create more value through supply chain efficiencies, overhauling business systems, and improving sales programs. This is an opportunity perfectly suited for OpenGate’s investment strategy, and we’re excited to be working with the team at B&M.”
Julien Lagrèze, Partner at OpenGate Capital’s Paris office stated, “The acquisition of B&M affirms OpenGate’s position as a trusted partner for corporations pursuing divestitures as part of their larger strategy. That we have a Paris-based team enables OpenGate to move swiftly and efficiently across Europe and enables us to work with sellers on a local-for-local basis.”
The acquisition of B&M represents the second investment by OpenGate in the past two months, following the announcement that OpenGate had acquired Power Partners, a US-based power transformer business, earlier this year.
About OpenGate Capital
OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses seeking revitalization through growth and operational improvements. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California and maintains offices in New York, Paris, France and São Paulo, Brazil. OpenGate’s professionals possess the critical skills needed to acquire, transition, operate and build successful businesses. To date, OpenGate Capital has executed more than 40 transactions ranging from corporate divestitures to turnaround acquisitions, industry consolidations and other special situation investments. For more information, please visit www.opengatecapital.com.