Middle-market private equity firm Wynnchurch Capital is investing in privately-held Gypsum Technologies Inc. The target’s management and employees are also investing alongside Wynnchurch.
Gypsum, founded in 1993, makes handling systems and other machines that are used to install wallboards. In addition to its Burlington, Ontario, headquarters, Gypsum has locations in Sweden, Germany and Mexico.
Wynnchurch partner Frank Hayes says the deal has good timing for the building products industry “for which we believe the near and long term fundamentals are quite attractive.” U.S. housing starts increased from about 1.1 million units in August 2015 to nearly 1.2 million units in September 2015, according to the Department of Commerce.
In other recent construction deals: Advent-backed Morsco is buying Murray Supply; Masonite International Corp. (NYSE: DOOR) is purchasing USA Wood Door; and Quanex (NYSE: NX) is adding Woodcraft Industries.