“We don’t see California home building and remodeling going away,” said Harry Watson, a partner at BlackEagle Partners, a Michigan-based private equity firm, when he and his team acquired EuroDesign Cabinets Inc., based in Chino, California.

That was in 2008.

Now, BlackEagle has exited its asset, selling it during perhaps the worst period in the history of California development. Royal Cabinets, another California-based home décor company, bought EuroDesign for terms undisclosed; calls seeking comment were not acknowledged by press time. However, at the end of the day, Watson's prognostication was correct: indeed, there remains a housing market in California, and his distressed investment bought as the California market was en route to shambles likely represents a well-timed deal.

BlackEagle bought EuroDesign (which, in 2008, boasted that “all” of its sales are in California, generated in primarily either San Francisco or Los Angeles) from Long Point Capital Partners.

Clay Smith, chief executive of Royal Cabinets, said EuroDesign’s presence will help his company expand its brand. He stated the two products have little in terms of geographical overlap.

Other BlackEagle assets include Rockford Products and US LBM Holdings, a provider of lumber and building supplies.

Private equity firms have sought to make some plays in the housing and construction space; Gen Cap America sold its ReBath and AmBath Corp. assets to Webster Capital, backed by Sorenson Capital; Fifth Street Finance provided financing for the deal.

HIG Capital also invested, in late 2009, in Coachmen Industries, a Pink Sheets-listed homebuilder. Also in 2009, Pulte Homes spent $3.1 billion in an all-stock deal to buy competitor Centex Corp.

Building products