A unit of the private equity firm Blue Wolf Capital Partners LLC announced it has acquired substantially all the assets of American Builders Supply (ABS), a Florida-based supplier of doors, windows, and trusses.
Terms of the deal weren't disclosed aside from saying that the investment in Sanford, Fla.-based ABS "creates a debt-free company that has substantial capital for growth." Aside from New York-based Blue Wolf, ABS' chief executive officer, Chad Barton, also invested in the transaction along with Bob Dello Russo, owner of Del-Air, an HVAC company based in Florida.
"ABS is a strong platform with leading market share, a reputation for excellence and a veteran management team with very deep relationships," said Michael Ranson, a partner in Blue Wolf. "Despite the housing collapse in Florida, the company has grown its market share and footprint throughout the downturn. Our capital and strategic resources will augment ABS and enable it to take advantage of the current industry turmoil."
Barton said that with the investment, ABS plans to expand geographically, broaden its product line, and target new end markets, such as aftermarket and multi-family homes.
ABS serves central and north Florida builders from Sanford, Winter Haven, Melbourne, and Jacksonville. It calls itself the largest independent supplier of doors, windows, and trusses in the state, but did not provide details as to how it makes that claim.
Blue Wolf says it "often invests when it can address financial or operational distress, or constructively resolve issues arising from corporate governance or relations with government entities or labor unions." Barton, in his statement, cited Blue Wolf's experience with turnarounds.