The Gores Group has agreed to invest $75 million in Stock Building Supply and to provide a $125 million revolving credit bridge facility for a 51% stake in a pre-packaged bankruptcy deal. The company's current owner, UK-based building materials distributor Wolseley, has also committed to providing the company with a $100 million debtor-in-possession financing package. The company is one of the largest building products suppliers in the U.S.
Private equity firms have acquired 27 other building supplies distributors and suppliers, according to the PitchBook Platform. Over two-thirds of the deals were add-on acquisitions, demonstrating the roll-up strategy through which a few investors approached the sector. Code Hennessy & Simmons' Beacon Roofing Supply acquired seven companies while Code Hennessy was an investor. Also with seven add-ons under its belt is JLL Partners and Warburg Pincus backed Builders FirstSource.