Construction Supply Group, a portfolio company of The Sterling Group, has acquired Construction Materials, a wholesale distributor of specialty building products, primarily for concrete contractors. No financial terms were disclosed.
HOUSTON, Oct. 2, 2019 /PRNewswire/ — The Sterling Group, a Houston-based middle market private equity firm, announced that its portfolio company, Construction Supply Group (“CSG”), has completed the acquisition of Construction Materials. Operating 16 branches in the Southeastern United States, Construction Materials is a long-established wholesale distributor of specialty building products, primarily for concrete contractors.
Construction Supply Group is a leader in the distribution of specialty construction materials, accessories and tools, primarily for professional concrete and masonry contractors in the United States and Canada. The company holds the clear number two position in the industry and is five times larger than its next closest competitor. The company has over 125 branches with approximately 1,600 employees and offers over 60,000 SKUs to nearly 60,000 customers.
The partnership with Construction Materials expands CSG’s geographical presence in important MSAs such as Florida, Georgia, Alabama and Texas, and further enhances its ability to serve customers and partner with suppliers. “With its substantial regional scale and leading market position, the partnership with Construction Materials results in further geographical diversification,” said Mitch Williams, CEO of Construction Supply Group. “We are looking forward to continuing to build on the success and market leadership that Construction Materials has experienced to date.”
The acquisition of Construction Materials is Construction Supply’s nineteenth acquisition in three years. The company will continue to seek growth opportunities to better serve its customers.
About The Sterling Group
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 55 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.0 billion of assets under management. For further information, please visit www.sterling-group.com.