Angeles Equity and Clearlake Capital Acquire Minnesota Building Products Firm
The acquisition of ABC is accretive to earnings and part of a plan to consolidate the building products distribution sector on a national scale, says Timothy Meyer, a co-founder and managing partner of Angeles Equity Partners.
STILLWATER, MN—Private investment firms Angeles Equity Partners and Clearlake Capital Group say their portfolio company American Construction Source has acquired Arrow Building Center in Stillwater, MN. Financial terms of the transaction were not disclosed.
ABC, also known as Consolidated Lumber Company, is one of the largest nationally ranked independent building products distributors in the country. ABC provides custom home builders, building professionals, and DIY customers a comprehensive portfolio of lumber and building materials products and specialty services in key Minnesota and Wisconsin markets, supported by a new state-of-the-art components manufacturing plant. ABC will continue serving customers under its current local brand name.
“The Arrow Building Center LBM business has been serving customers in the upper Midwest since 1903,” says James Drexinger, CEO of ACS. “We remain committed to providing the efficient ‘Arrow Experience’, as we look to drive operational excellence and identify new ways to be the most trusted building products supplier in the local markets we serve.”
“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,” say Timothy Meyer and Jordan Katz, co-founders and managing partners of Angeles Equity Partners.
“We are pleased to bring ABC, a well-known and respected name, under the growing American Construction Source platform,” says José E. Feliciano, co-founder and managing partner of Clearlake and James Pade, principal of Clearlake. “Clearlake looks forward to partnering with the talented ABC management team as we continue to build the ACS platform and promote operational best practices.”
Key management from Arrow Building Center will remain with the business as it joins the ACS portfolio. Ron Schumacher continues leading ABC as division president, and Ed O’Connor continues as vice president-finance and accounting.
“We are confident Angeles and Clearlake are the best partners to create value and enable growth through ACS to help our business achieve its full potential,” says Schumacher. “Our customers appreciate our attention to detail and how we deliver on our promises.”