Argosy Private Equity bought a controlling stake in Fairway Building Products, and Graycliff Partners invested subordinated debt and equity financing to support the purchase.
Fairway, headquartered in Mount Joy, Pennsylvania, manufactures vinyl, aluminum and composite railing systems, and distributes other building products.
Argosy, headquartered in Wayne, Pennsylvania, focuses on investing in lower middle-market business services and manufacturing companies. The firm’s other investments include U.C. Coatings, which it invested in in December, and Simkar, a lighting fixture company.
Graycliff’s investment is the fifth from Graycliff Mezzanine II LP, a fund with more than $250 million in commitments.
Construction spending in June totaled $950 billion at a seasonally adjusted annual rate, down 1.8 percent from May but up 5.5 percent from June 2013, according U.S. Census Bureau.
Building products companies have been attracting investor attention lately. Recent transactions include Kodiak Building Partners’ acquisition of AO Inc., a company that makes products for the commercial build-out market, and Succession Capital Inc.’s acquisition of Wine Valley Siding Supply Inc.