Sources: White Cap Holdings LLC, Atlanta; CP staff
White Cap Supply and Construction Supply Group (CSG) have combined in a transaction valued at approximately $4 billion, netting the top North American distributor of concrete accessories plus specialty construction and safety products. Pursuant to a plan announced in August, the merger was consummated following spin off of the White Cap business from industrial market distributor HD Supply.
Funds under New York investor and White Cap suitor Clayton, Dublier & Rice (CD&R) hold a 65 percent stake in the combined entity. Houston-based Sterling Group owns the remaining stake, having built CSG into a concrete and masonry construction supply powerhouse through a series of acquisitions starting with Brock White in late 2016. CSG and White Cap have highly complementary product offerings and geographic footprints, aligned cultures plus strong talent focused on providing exceptional customer service, CD&R and Sterling officials contend. The partners have named White Cap CEO John Stegeman and President Alan Sollenberger to lead the combined business, which spans:
• Upward of $4 billion in annual revenues from a comprehensive offering of 400,000-plus products, channeled through 4,500 suppliers;
• More than 850 outside sales associates with significant industry experience;
• More than 1,000 inside and counter sales associates to deliver on a promise of two-hour ready will call at all locations; and,
• Nearly 2,000 delivery vehicles to enable same day or next day service to job sites.
“Both White Cap and CSG share the vision of continuous growth with the goal to relentlessly improve customer service,” says Stegeman. “By joining together, our platform allows expansion of our product and service offerings across more than 400 locations in 46 U.S. states and eight Canadian provinces.”
“We will continue to build on our vast experiences and stronger future by investing in focused local growth initiatives with the support of our national platform,” adds Sollenberger.
Investors set $4 billion Construction Supply Group, White Cap merger