Construction materials distributor Rugby Architectural Building Products, backed by Leading Ridge Capital, acquired Albuquerque Hardwood Lumber Co. for undisclosed terms. The purchase comes as new home sales soared in April.
The target founded in 1988 and headquartered in Albuquerque, New Mexico, supplies lumber and wood products to commercial and residential builders. The company mostly serves Colorado, Texas and New Mexico.
Rugby, based in Concord, New Hampshire, distributes plywood and adhesives that are used to construct cabinets, doors and countertops. The company has about $290 million in annual revenue and made more than 16 acquisitions since 2010. Earlier in 2016, Rugby purchased another lumber company, Atlanta-based Cumberland Wood Products Inc.
Leading Ridge is lower middle market private equity firm that has offices in New York and Washington, D.C. The PE firm focuses on the distribution, manufacturing and logistics sectors in businesses that have around $5 million in Ebitda.
There is a demand for construction companies as new home sales show signs of picking up. According to the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales increased to 619,000 in April from 531,000 in March, a 16.6 percent jump.
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