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Blue Wolf Buys Tenon’s North American Mill Business, as Construction M&A Grows

ABC, Meridian General, Southwire and United Subcontractors recently purchased construction companies

Blue Wolf Capital Partners LLC has purchased all of Tenon Holding’s North American building products business, Nacs USA Inc., for an undisclosed amount. The target will now operate under the name Novo Building Products LLC as part of the deal.

Novo Building Products is a maker and distributor of stair parts, moldings, doors and other building products to material dealers, including: lumberyards, door shops, retail home centers, millwork manufacturers. The Grand Rapids, Michigan-based target distributes its wood products to building material service providers across the U.S., Canada and Mexico. Tenon’s North American divisions include The Empire Company, Southwest Moulding Company, Ornamental Mouldings, Ornamental Products, and Creative Stair.

Founded in 2005, Blue Wolf is a New York-based private equity firm that looks to make control investments in middle market companies. The PE firm targets companies that service the forest and building products, manufacturing and distribution, aerospace and defense, and healthcare industries. Blue Wolf’s forest and building products portfolio consists of companies such as Twin Rivers Paper Co., Finch Paper Co., Suwannee Lumber Co., American Builders Supply, Northern Resources Nova Scotia and Snappy Air Distribution Products. The firm notes that the rebound in U.S. home building since the housing crash in 2009 is “serving as a catalyst” for construction transactions.

More construction-related M&A is expected in 2017. Recent acquisitions include: Southwire Co. LLC’sbuying United Copper Industries Inc., a maker of electrical wire, from KPS Capital Partners; United Subcontractors Inc.’spurchase of insulation contractor Southern Foam and Coating; Meridian General Capital’sbuying of PowderCoat Services Inc., which provides coating services to construction, automotive, consumer and electronics sectors; and ABC Supply Co.’spurchase of L&W Supply,a distributor of drywall, ceiling tiles and steel framing materials to building contractors, from USG Corp. (NYSE: USG).

 

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