The Gores Group, a Los Angeles-based private equity firm, has agreed to buy 51% of Stock Building Supply from Wolseley Plc, the U.K.-based building materials distributor, Stock announced today. But what exactly is the Gores Group?
Founded in 1987 by Alec Gores, the Gores Group currently holds $1.7 billion in equity. It has held stakes in more than 40 businesses across technology, telecommunications, and industrial areas; now it is involved with 17 firms. One of its most recognized holdings is the Westwood One Radio Network.
During the fall of Web-based technology companies, the Gores Group sought and purchased companies it could breathe new life into. However, the purchase of more than half of Stock appears to be the first LBM-related acquisition by Gores.
According to Hoovers.com, the equity firm targets businesses with revenues between $30 million and more than $1 billion, which are often spin-offs from larger corporate parents companies.