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IOP Acquires Roof Maker Union Corrugating, as Construction M&A Picks Up

In 2016, the operations-focused PE firm acquired Alexandria Moulding from the same fund

Private equity firm Industrial Opportunity Partners (IOP) has purchased roofing manufacturer Union Corrugating Company Holdings Inc. for an undisclosed amount. This is the tenth platform investment from the firm’s most recent fund.

Union Corrugating, headquartered in Fayetteville, North Carolina, is a maker of metal roofing systems and roofing parts. The target’s products are used for residential, commercial, and post frame agricultural building purposes. Union Corrugating sells its roofing systems through an array of distribution channels, including: lumber retailers, wholesalers, home centers, and contractors. The target services more than 1,200 clients across the U.S. through its ten additional manufacturing facilities across the Southeast, Mid-Atlantic and Midwest region.

The current deal marks as the tenth platform investment from the IOP’s $275 million Industrial Opportunity Partners II fund. The Evanston, Illinois-based PE firm used the same fund to acquire wood molding distributor Alexandria Moulding Inc. in 2016 and hardwood manufacturer Coldwater Veneer Inc. in 2015. IOP’s other investments from Industrial Opportunity Partners II fund include: AAA Sales & Engineering Inc., Aarrowcast Inc., Monroe Truck Equipment Inc., El Dorado Packaging Inc., KIC LLC, Betty Machine Co. Inc. and Coldwater Veneer Inc.

Resurgence in the U.S. housing market has triggered a pickup in deal activity for building products. Related deals include: Dormakaba’s agreement to buy portions of the mechanical security division from Stanley Black & Decker (NYSE: SWK) for $725 million; Audax Private Equity-backed Innovative Chemical Products’ purchase of spray foam maker Fomo Products Inc.; IPS Corp.’s, backed by middle market private equity firm Nautic Partners, deal for Integra Adhesives; Kelso & Co.’s investment in lumber supplier US LBM Holdings LLC; and Quanex (NYSE: NX) acquiring cabinet manufacturer Woodcraft Industries for $248.5 million.

McDermott Will & Emery LLP served as legal counsel to IOP, while VRA Partners served as financial adviser to shareholders of Union Corrugating. PNC Business Credit (NYSE: PNC) and Patriot capital provided financing for the acquisition of Union Corrugating.

 

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