Private equity firm acquires controlling interest in Stock Building Supply

Posted May 6, 2009

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Stock Building Supply Holdings, one of the world’s largest home building supply providers, has a new owner.

The Gores Group, a private equity firm based in California, has purchased 51 percent ownership of Raleigh-based Stock from Wolseley PLC. As part of the deal, Gores Group is pouring $75 million into Stock.

Wolseley decided to sell Stock as the new home building market in the U.S. melted last year. The U.K. based company retains 49 percent ownership and also will provide $100 million in financing to Stock.

As part of the acquisition, Stock also filed for Chapter 11 bankruptcy. The company said all debts would be paid.

“We are very excited about today’s announcement and look forward to working with Gores to develop the business,” said Stock President Joe Appelmann in a statement. “Gores’ strong operational expertise and focus will help position the company during this unprecedented downturn and to outperform the market.”

On March 6, Stock said Wolseley would “pursue a sale or joint venture, or to dispose of or otherwise exit Stock Building Supply, by Aug. 1.”

"After conducting a thorough evaluation, it was determined that a partnership with Gores would be most beneficial for Stock’s employees, vendors and customers," Stock said in its announcement. "Given its confidence and support for the business, Wolseley will retain a 49 percent interest in the business."

The decision to sell Stock is part of a recapitalization plan by Wolseley.

Stock employs some 1,400 people in North Carolina, including 930 in the Triangle, according to Waters. The company has been cutting jobs and closing operations in recent months as the U.S. economy slowed and the housing market crashed.


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  • Caveman93 May 7, 2009

    This is going to hurt!

  • POINT BLANK May 6, 2009

    Insiders tell me that within 6 to8 mths,most ,if not all,STOCKS will be sold off or closed... The land they are on is far more valuable than the business

  • momof5 May 6, 2009

    Let me explain to those who have no idea and just want to speculate. Obviously the new owner saw value in buying/investing in Stock Building Supply. Day to Day operations will not change. The only thing that has changed is that Stock now has financial backing and will hopefully be able to hire back some of the many people they had to lay off. At least Stock did not ask for stimulus money like some lumber companies around here. This is a good thing.

  • momof5 May 6, 2009

    YOU can see the prices going up? Going up on what? Obviously YOu do not have anyone in your family in the building business. It is worse now that it has ever been. I know my husband is working 2 jobs and you are complaining about prices going up?
    get real. You do not know all the details!

  • ReddHott13 May 6, 2009

    I can already see the prices going up!!!!