The deal brings to ABC Supply a network of 103 branches where 770 employees generated $393 million in sales in 2014, Saint-Gobain said. ABC Supply posted $5.26 billion in sales last year and had been on the verge of opening its 500th branch. With the Norandex acquisition, the combined company will operate over 600 locations in 49 states and the District of Columbia with combined annual sales of over $6 billion.
"This transaction is in line with Saint-Gobain Building Distribution's strategy of optimizing its portfolio by divesting non-core assets and focusing on bolstering its leading positions in Europe and Brazil," Saint-Gobain said in a statement.
“This strategic acquisition reinforces our leadership position in the exterior products market and establishes a strong foundation for our next phase of growth” said Keith Rozolis, ABC Supply’s president and chief executive officer. “We ... are confident that this combination will bring new benefits and create enhanced opportunities for our customers and associates from both companies.”
The purchase is expected to close in the fourth quarter.
The planned acquisition is the biggest since ABC Supply acquired Bradco in 2010--a deal that vaulted Beloit, Wis.-based ABC Supply to the top of the ProSales 100. Before and since then, ABC Supply has grown as much from organic expansion as from acquisitions of relatively small companies. (See other recent deals ABC Supply has made.)