ABC Supply Holding Corp., the parent company of Beloit-based American Builders & Contractors Supply Co. Inc., has entered into a definitive agreement to redeem all of the shares held by its minority shareholders, an investor group led by Advent International.
Upon the closing of the transaction, 100 percent of the shares of ABC Supply will be controlled by the company’s co-founder, Diane M. Hendricks.
The transaction will bring a successful partnership with Advent to its natural conclusion, Hendricks said. In 2010, Advent sponsored ABC Supply’s acquisition of its portfolio company, Bradco Supply, and became a large minority shareholder. After a very successful integration and nearly three years of strong financial performance, Advent and other minority holders are exiting the investment.
“I believe that the combination of ABC and Bradco and our partnership with Advent have been extremely positive and have served all parties very well,” Hendricks said.
David Luck, chief executive officer and president of ABC Supply, said, “We are pleased that our operating performance has allowed both majority and minority shareholders to accelerate their plans for the share redemption.”
Committed financing for the transaction is being provided by Deutsche Bank, UBS Investment Bank and Bank of America Merrill Lynch. UBS Investment Bank advised the majority shareholder and Barclays Capital advised Advent. The transaction is expected to close in April.
ABC Supply has more than 450 branches in 45 states and is the largest wholesale distributor of roofing in the United States and one of the nation’s largest distributors of siding, windows and other select exterior building products. ABC Supply achieved revenue exceeding $4.6 billion for the calendar year 2012.
Since its founding by Ken and Diane Hendricks in 1982, ABC Supply’s sole focus has been serving professional contractors.