TriWest Capital sells California TrusFrame in $179.5m deal

TriWest Capital Partners has sold California TrusFrame, a Perris, California-based designer and maker of prefabricated structural building components, to Builders FirstSource.

TriWest Capital Partners has sold California TrusFrame, a Perris, California-based designer and maker of prefabricated structural building components, to Builders FirstSource. The deal was completed at an enterprise value of $179.5 million. TriWest, a Canadian private equity firm, first invested in California TrusFrame in 2018.

PRESS RELEASE

Calgary, Alberta (September 2, 2021) — TriWest Capital Partners (“TriWest”) today announced that it has sold California TrusFrame, LLC (“CTF” or the “Company”), a producer of value-added building products in California, to Builders FirstSource Inc. (“Builders FirstSource”), a leading U.S. supplier of building products, prefabricated components and value-added services to the professional market segment for new residential construction and repair and remodeling.

Established in 1982, CTF is a leading designer and manufacturer of prefabricated structural building components (including roof trusses, floor trusses and wall panels), supplying home builders, framers and general contractors across single-family and multi-family end markets throughout California. CTF is led by President and Chief Executive Officer Shawn Overholtzer, who will be joining Builders FirstSource along with the rest of CTF’s employees. CTF operates four strategically located manufacturing facilities in Hughson, Sanger and Perris, California.

“The management team at CTF, led by Steve Stroder and Shawn Overholtzer over our investment period, executed tremendously well on their strategy of becoming one of the most respected structural building component manufacturers in the industry. This was done by establishing a culture focused on the success of all CTF stakeholders, including employees, customers and suppliers,” said Chad Danard, Senior Managing Director, TriWest. “We very much enjoyed working with the entire CTF team and wish them continued success with Builders FirstSource as their new partner,” added Duncan Adams, Principal, TriWest.

Shawn Overholtzer commented, “CTF is committed to providing exceptional quality and service to our customers while always displaying compassion and respect for our business partners and the communities in which we work and live. We very much appreciate the guidance and support that TriWest has provided to us over the years as we worked towards that commitment. We are also excited to be part of the Builders FirstSource organization, where these values are shared.”

The transaction was completed at an enterprise value of US$179.5 million. TriWest’s financial adviser was Lincoln International with legal advice provided by Ropes & Gray in the U.S. and Bennett Jones in Canada. Tax and financial due diligence services were provided by Ernst & Young.

About TriWest Capital Partners
Founded in 1998 and based in Calgary, Alberta, TriWest is one of Canada’s leading private equity firms, having raised over C$1.4 billion in committed capital through six funds. TriWest has successfully invested in 43 companies across a broad cross-section of the economy in partnership with their management teams. We work closely with our management partners, together proactively putting in place a strategy that maximizes growth potential and value creation by emphasizing operational excellence, prudent governance and an efficient capital structure. The principals of TriWest have significant operational and financial expertise, making us effective partners in creating shareholder value. For more information: www.triwest.ca

About CTF
Based in Murrieta, California with four strategically located plants that serve customers throughout the state, CTF is the leading manufacturer of roof trusses, floor trusses, wall panels and floor cassettes for commercial, residential, and multi-family construction. CTF offers a high level of engineering and design services coupled with an unparalleled product quality and high capacity manufacturing capability.