PrimeSource to Acquire Nationwide Industries
PrimeSource Building Products, Inc. (“PrimeSource” or the “Company”), a North American provider of specialty branded residential building products, announced that it has signed a definitive agreement to acquire NWI Enterprises (“Nationwide”), a provider of branded specialty hardware for outdoor residential applications including fence & gate hardware, railing systems and perimeter security, from affiliates of Harbour Group. PrimeSource is backed by Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”). The transaction is PrimeSource’s second acquisition during Clearlake’s ownership, which acquired the Company in December 2020 and concurrently merged it with Dimora Brands. Financial terms were not disclosed. Closing of the transaction is subject to expiration of statutory waiting periods and other customary conditions.
Based in Tampa, Nationwide offers a diverse portfolio of 8,000 SKUs focused on residential outdoor living and perimeter security. The combination with Nationwide will further enhance PrimeSource’s portfolio of branded products and expand the Company’s reach into the specialty fence & gate dealer channel.
Operating a national footprint with 45 distribution centers, PrimeSource is a critical link in the residential building products supply chain, serving as the ‘one-stop-shop’ for specialty building products ranging from construction fasteners and building materials to specialty home hardware. PrimeSource owns a comprehensive portfolio of branded products including Grip-Rite, Pro-Twist, Top Knobs, Hardware Resource, Atlas Homewares, and Jeffrey Alexander among others across several categories including construction fasteners, cabinets and cabinet hardware, lighting and plumbing. PrimeSource delivers these products daily across multiple channels including national home improvement retailers, lumberyards, specialty building products dealers, and specialty showrooms.
“We are thrilled to add Nationwide to the PrimeSource portfolio. The Nationwide team has built a stable of brands and products that fits well with our existing platform and our national scale will enable us to grow this business at an accelerated pace,” said Tom Koos, CEO of PrimeSource. “Along with Dimora Brands, Nationwide continues our efforts to build the branded specialty building products platform with the largest sales and service platform in the industry. Our depth of catalogue combined with our customer reach gives us a unique advantage.”
“In combination with our acquisition of Dimora Brands, the acquisition of Nationwide represents another successful step in our strategy to aggressively grow PrimeSource and create a scale specialty residential building products platform,” said José E. Feliciano, Co-Founder and Managing Partner of Clearlake, and Colin Leonard, Partner of Clearlake. “Partnering with Tom and the PrimeSource team last year, we sought to deploy our O.P.S.® playbook to capitalize on the Company’s unique footprint and logistics network, as well as its comprehensive channel reach by expanding the branded product portfolio across residential building product applications. We look forward to continuing our exciting growth trajectory with both organic and acquisition initiatives going forward.”
BlackArch Partners acted as the exclusive financial advisor to Nationwide and its shareholders. PrimeSource was advised by Baird and a fully committed facility to finance the transaction was provided by Deutsche Bank Securities Inc.
PrimeSource is a leading national provider of specialty branded residential building products. The Company’s product offering spans more than 52,000 SKUs, including construction fasteners, cabinet knobs & pulls, and functional hardware, among others. PrimeSource operates an expansive footprint, serving over 43,000 customer locations through 45 strategically located distribution centers in 29 states. PrimeSource plays a crucial role for its customers who rely on its brand value, breadth of offering and logistics capabilities. For more information, please visit www.primesourcebp.com.
Nationwide, through its subsidiaries, is a supplier of specialty hardware to OEMs, distributors, and installers in the fence and gate, railing, and patio markets. Nationwide’s brands include Nationwide Industries, Ultra-tec, RailFX, and LockeyUSA. Based in Tampa, Nationwide’s products include a broad line of fence and gate hardware, railing component and infill systems, perimeter security components, custom building materials components sold on an OEM basis and hardware for the patio industry. For more information, please visit www.nationwideindustries.com.
About Clearlake Capital Group, L.P.
Founded in 2006, Clearlake Capital Group, L.P. is an investment firm operating integrated businesses across private equity, credit and other related strategies. With a sector-focused approach, the firm seeks to partner with experienced management teams by providing patient, long term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are industrials, technology, and consumer. Clearlake currently has approximately $35 billion of assets under management, and its senior investment principals have led or co-led over 300 investments. The firm has offices in Santa Monica and Dallas. More information is available at www.clearlake.com and on Twitter @ClearlakeCap.
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Source: Clearlake Capital Group, LP