Stock Building Supply, a Raleigh, N.C.-based portfolio company of Gores Group, has acquired the assets of National Home Centers Inc., a provider of building materials in Arkansas. No financial terms were disclosed.
Stock Building Supply announced today that it acquired the assets of National Home Centers, Inc., a leading supplier of building materials in Arkansas, continuing Stock’s strategy of strengthening and expanding operations in advance of a housing recovery.
“We are pleased to complete this transaction and look forward to working with our new colleagues in central and northwest Arkansas,” said Joe Appelmann, President and CEO. “Stock transformed its operating model over the past year to become a leaner, more focused organization. This process has allowed us to seize significant opportunities like National Home Centers. We will continue to explore intelligent growth options both in our core markets and elsewhere if opportunities arise.”
Since The Gores Group, LLC acquired a majority stake in Stock in May 2009, the company has used the downturn in new construction to restructure its operations and strengthen its finances. Targeted acquisitions like National Home Centers expand Stock’s national footprint, which includes 19 markets with strong long-term growth forecasts.
Dwain Newman, former Chairman and CEO of National Home Centers, stated, “Today is an exciting milestone for National Home Centers. We are proud to be part of a company with a strong financial position and a promising future. Stock has a strong record of improving its own operations despite difficult market conditions and this transaction will allow National Home Centers to realize its full capabilities. The partnership with Stock allows us to remain fully committed to serving our customers with quality products and services.”
Ken Greene has been appointed Market Manager for Stock’s Arkansas operations. Greene has served in numerous positions within Stock including key posts in operations and sourcing.
National Home Centers filed a voluntary petition for federal bankruptcy reorganization on December 8, 2009. Stock entered into an asset purchase agreement with National Home Centers on February 26, 2010, acting as a “stalking horse” bidder for the purchase of substantially all of the assets of National Home Centers pursuant to Section 363 of Chapter 11 of the U.S. Bankruptcy Code. On April 2, 2010, the Bankruptcy court approved the sale of the assets to Stock, and Stock completed the transaction on April 5, 2010.
About Stock Building Supply
Raleigh, NC-based Stock Building Supply is a leading supplier of building materials to professional home builders and contractors in the United States. Stock operates out of 19 markets including Washington, DC, Paradise, PA, Richmond, VA, Raleigh-Durham, NC, Charlotte, NC, Winston-Salem/Greensboro, NC, Greenville, SC, Columbia, SC, Atlanta, GA, Austin, TX, Amarillo, TX, Houston, TX, Lubbock, TX, San Antonio, TX, Albuquerque, NM, Salt Lake City, UT, Southern Utah, Northeast Idaho, and Los Angeles, CA. For more information, visit www.stockbuildingsupply.com.
About The Gores Group, LLC
Founded in 1987, The Gores Group, LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm’s operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, LLC has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. The firm’s current private equity fund has committed equity capital of $2.7 billion. Headquartered in Los Angeles, The Gores Group, LLC maintains offices in Boulder, CO, and London. For more information, visit www.gores.com