M&A Deal Summary

CD&R and The Sterling Group Acquire White Cap

On August 11, 2020, private equity firms CD&R and The Sterling Group acquired distribution company White Cap from HD Supply

Acquisition Highlights
  • This is CD&R’s 13th and The Sterling Group’s 8th transaction in the Distribution sector.
  • This is CD&R’s 48th and The Sterling Group’s 36th transaction in the United States.
  • This is CD&R’s 6th and The Sterling Group’s 2nd transaction in Georgia.

M&A Deal Summary

Date 2020-08-11
Target White Cap
Sector Distribution
Buyer(s) CD&R
The Sterling Group
Sellers(s) HD Supply
Deal Type Divestiture

Target

White Cap

Norcross, Georgia, United States
White Cap is a distributor of specialty concrete and construction products. White Cap serves as a one-stop shop providing concrete accessories and chemicals, tools and equipment, building materials and fasteners, erosion and waterproofing and safety products to professional contractors by meeting their distinct and customized supply needs in non-residential, residential and industrial applications. White Cap was formed in 1976 and is based in Norcross, Georgia.

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Buyer(S) 2

Buyer

CD&R

New York, New York, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 1978
PE ASSETS 30.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Clayton, Dubilier & Rice LLC (CD&R) is a large private equity firm that targets non-core divestitures of large corporations, growth equity financings, traditional buyouts, and corporate/family partnerships. CD&R looks for opportunities in North America, Western Europe, and Asia and will consider businesses in a wide range of sectors including consumer/retail, healthcare, industrials, and services. Prospective companies generally lead their respective markets, have stable cash flows, and possess competitive advantages through differentiated products, services, or processes. CD&R was formed in 1978 and has offices in New York City and London.


DEAL STATS #
Overall 67 of 93
Sector (Distribution) 13 of 17
Type (Divestiture) 21 of 25
State (Georgia) 6 of 7
Country (United States) 48 of 67
Year (2020) 5 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-07-23 Cheney Brothers

Riviera Beach, Florida, United States

Cheney Brothers is a family-owned and operated broad line distributor offering over 64,000 stocked items from gourmet to every day. Cheney EXPRESS is open to the public and carries frozen, refrigerated and dry products with carrying out service to your vehicle. Insisting upon top-quality products from nationally recognized manufacturers, Cheney Brothers’ broad inventory consists of more than 50,000 stocked items, from gourmet to every day. Cheney Brothers was formed in 1925 and is based in Riviera Beach, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-08-31 Epicor Software

Austin, Texas, United States

Epicor Software is a global provider of industry-specific enterprise software to industrial-focused sectors. Epicor serves as a trusted partner for thousands of companies worldwide across key industries such as manufacturing, distribution, and retail. Epicor Software was founded in 1972 and is based in Austin, Texas.

Buy -
Buyer

The Sterling Group

Houston, Texas, United States


Category Private Equity Firm
Founded 1982
PE ASSETS 9.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Sterling Group is a private equity firm focused on acquiring middle-market businesses within basic manufacturing, industrial services, and distribution. Sterling looks for companies valued from $100 to $1000 million with positive cash-flow, strong market positions, and potential to grow. Sterling avoids investments in financial services, real estate, healthcare, or information technology companies. The Sterling Group was formed in 1982 and is based in Houston, Texas.


DEAL STATS #
Overall 39 of 53
Sector (Distribution) 8 of 8
Type (Divestiture) 7 of 9
State (Georgia) 2 of 3
Country (United States) 36 of 50
Year (2020) 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-08-11 Construction Supply Group

Denver, Colorado, United States

Construction Supply Group engages in the distribution of construction materials, accessories and tools, primarily for professional concrete and masonry contractors in the United States and Canada. Construction Supply Group is based in Denver, Colorado.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-10-08 Highline Warren

Memphis, Tennessee, United States

Highline Warren is a national distributor of automotive products, with 15 distribution centers and eight state-of-the-art manufacturing facilities serving multiple channels across the aftermarket industry. Highline Warren was founded in 2016 and is based in Memphis, Tennessee.

Sell -

Seller(S) 1

SELLER

HD Supply

Atlanta, Georgia, United States

Category Company
Founded 2007
Sector Distribution
Employees11,000
Revenue 6.1B USD (2020)
DESCRIPTION
HD Supply's headquarters in Atlanta, Georgia.
HD Supply's headquarters in Atlanta, Georgia.

HD Supply is a wholesale distributor of a broad range of products and services to professional customers in the infrastructure, energy, maintenance, repair & improvement, and specialty construction markets. HD Supply was founded in 2007 and is based in Atlanta, Georgia.


DEAL STATS #
Overall 7 of 7
Sector (Distribution) 6 of 6
Type (Divestiture) 7 of 7
State (Georgia) 3 of 3
Country (United States) 7 of 7
Year (2020) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-09-09 Todd Pipe & Supply

Anaheim, California, United States

Todd Pipe & Supply Co. engages in wholesale distribution of hydronic plumbing and heating equipment and supplies. Todd Pipe & Supply Co. is a strong and well-known business, with six branches in attractive growth areas.

Sell $160M