M&A Deal Summary

Cornerstone Building Brands Acquires Environmental Materials

On February 20, 2019, Cornerstone Building Brands acquired building materials company Environmental Materials from Gallagher Industries and Mid Oaks Investments for 187M USD

Acquisition Highlights
  • This is Cornerstone Building Brands’ 4th transaction in the Building Materials sector.
  • This is Cornerstone Building Brands’ 3rd largest (disclosed) transaction.
  • This is Cornerstone Building Brands’ 5th transaction in the United States.
  • This is Cornerstone Building Brands’ 1st transaction in Colorado.

M&A Deal Summary
Date 2019-02-20
Target Environmental Materials
Sector Building Materials
Buyer(s) Cornerstone Building Brands
Sellers(s) Gallagher Industries
Mid Oaks Investments
Deal Type Add-on Acquisition
Deal Value 187M USD
Advisor(s) BB&T Capital Markets (Financial)
Davis Graham & Stubbs (Legal)

Target

Environmental Materials

Denver, Colorado, United States
Environmental Materials LLC designer, manufacturer, and installer of stone veneer products. EM sells its products and services under the Environmental StoneWorks brand mainly to residential and commercial builders in several regions throughout the United States.

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Buyer(S) 1

Buyer

Cornerstone Building Brands

Cary, North Carolina, United States
Category Company
Founded 1984
Sector Building Materials
Employees20,500
Revenue 4.6B USD (2020)
DESCRIPTION

Cornerstone Building Brands is an integrated manufacturer of metal products for the nonresidential building industry. Cornerstone Building Brands was formed in 1984 and is based in Cary, North Carolina.

DEAL STATS #
Overall 5 of 12
Sector (Building Materials) 4 of 11
Type (Add-on Acquisition) 4 of 11
State (Colorado) 1 of 2
Country (United States) 5 of 11
Year (2019) 1 of 1
Size (of disclosed) 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-11-16 Ply Gem Industries

Cary, North Carolina, United States

Ply Gem Industries, Inc. is a manufacturer of building products in North America. Number one in vinyl siding and in vinyl and aluminum windows, Ply Gem produces a comprehensive product line of windows and patio doors, vinyl and aluminum siding and accessories, designer accents, cellular PVC trim and mouldings, vinyl fencing and railing, stone veneer, roofing and gutterware products, used in both new construction and home repair and remodeling across the United States and Canada.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-03-02 Kleary Masonry

Sacramento, California, United States

Kleary Masonry, Inc. is an installer of manufactured stone veneer. Kleary Masonry was established in 1959 and is based in Sacramento, California.

Buy -

Seller(S) 2

SELLER

Gallagher Industries

Denver, Colorado, United States
Category Private Equity Firm
Founded 1986
Size Small
Type Sector Agnostic
DESCRIPTION

Gallagher Industries is a family owned private equity firm that targets investments in manufacturing and value-added distribution businesses headquartered in North America. Gallagher seeks owner-operated or family owned businesses looking to sell a controlling interest to an investment partner. Prospective businesses are typically profitable with EBITDA between $1 and $5 million. Gallagher Industries is based in Denver, Colorado.

DEAL STATS #
Overall 6 of 6
Sector (Building Materials) 2 of 2
Type (Add-on Acquisition) 5 of 5
State (Colorado) 1 of 1
Country (United States) 6 of 6
Year (2019) 1 of 1
Size (of disclosed) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-05-26 Profile

Buffalo Grove, Illinois, United States

Profile offers environmentally sound, site-specific solutions for soil modification, horticultural production, erosion control, and plant establishment. As a manufacturer of hydraulically applied mulch and additives, horticulture substrates, as well as biotic and ceramic conditioners to amend the soil, the company offers on-site solutions and consultation to architects, land planners, contractors, developers, and municipalities. Their team of agronomists, engineers and industry experts is supported through a worldwide network of experienced distributors. Profile was founded in 1997 and is based in Buffalo Grove, Illinois.

Sell -
SELLER

Mid Oaks Investments

Buffalo Grove, Illinois, United States
Category Private Equity Firm
Founded 1986
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Mid Oaks Investments LLC is a private investment firm that invests in middle market companies primarily located in North America. The firm targets established businesses with annual revenues between $25 million to $250 million.Although the firm has a preference for businesses in the manufacturing industry, Mid Oaks will also invest in other opportunities in industries such as distribution, service, and others. The firm is not interested in financial, insurance, real estate, oil and gas, or retail businesses. Mid Oaks Investments, LLC was founded in 1986 and is based in Buffalo Grove, Illinois.

DEAL STATS #
Overall 12 of 12
Sector (Building Materials) 2 of 2
Type (Add-on Acquisition) 5 of 5
State (Colorado) 1 of 1
Country (United States) 11 of 11
Year (2019) 1 of 1
Size (of disclosed) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-09-11 Truck Bodies & Equipment International

Eden Prairie, Minnesota, United States

Truck Bodies & Equipment International, Inc. is a U.S. manufacturer of dump truck bodies and trailers. TBEI has successfully built a portfolio of strong brands, which currently occupy premier market share positions in their respective product categories, through a combination of an intense focus on operational excellence, a comprehensive distribution strategy, and continuous attention to its customers’ primary requirements for a high-quality product and short lead times.

Sell -
Mergr

Product

Company

Legal