Minnesota-based distributor Arrow Building Center (ABC) has been acquired by private investment firms Angeles Equity Partners and Clearlake Capital Group through their portfolio company American Construction Source (ACS), the firms announced today. Financial terms of the transaction were not disclosed.
ABC has been in business since 1903 and provides custom home builders, building professionals , and DIY customers with a comprehensive portfolio of LBM products and specialty services. The distributor, also known as Consolidated Lumber Company, serves customers in several Minnesota and Wisconsin markets with its 16 full service lumberyards, specialty divisions, and manufacturing plant. ABC, ranked 48th on the ProSales 100, will continue to serve and operate under its current local brand name, according the the news release.
"We believe the acquisition of ABC is immediately accretive and further demonstrates our commitment to consolidate the building products distribution sector to deliver national scale, personalized service, and the industry's best customer experience," co-founders and managing partners of Angeles Equity Partners Timothy Meyer and Jordan Katz said in the release.
According to the release, key management from Arrow Building Center will remain with the business as it joins the ACS portfolio. Ron Schumacher will continue leading ABC as division president and Ed O'Conner will continue as vice president of finance and accounting.
Angeles and Clearlake formed ACS in late September as part of their acquisition of Meek's Lumber, the 22nd biggest company on the ProSales 100. At the time of the Meek's acquisition, the firms indicated that ACS was formed "to acquire Meek's and additional lumber and building material businesses to create a leading national building products distributor with the resources, leverage, and focus to delvier the LBM industry's best customer experience."
The two private investment firms followed up the acquisition of Meek's by acquiring Colorado LBM businesses Edwards Building Center and Breckenridge Building Center via their portfolio company in October.