May 12 2015
Platinum Equity today announced it has completed the acquisition of PrimeSource Building Products, Inc. from ITOCHU Corporation. Financial terms were not disclosed.
PrimeSource, headquartered in Irving, Texas, is the largest distributor of construction fasteners and one of the largest distributors of non-lumber building products in North America. Platinum Equity is a global private equity firm currently investing from a $3.75 billion buyout fund focused on acquiring businesses that can benefit from the firm's operational expertise.
Platinum Equity partner Jacob Kotzubei, who leads the team that pursued the acquisition, said several factors make PrimeSource an attractive investment opportunity.
"PrimeSource is one of the leaders in the industry with an impressive global network, strong customer relationships and well recognized brands," said Mr. Kotzubei. "We believe the company is well positioned for growth, both organically and through prospective add-on acquisitions."
Platinum Equity's operations and M&A teams are working closely with PrimeSource co-CEOs David Fishbein and Bob Furio on long-term strategic plans.
"We are excited about the transition to new ownership," said Mr. Fishbein. "The partnership with Platinum Equity will be a catalyst for PrimeSource to provide even greater value to our employees, customers and vendor partners than ever before."
"This is a terrific opportunity for PrimeSource and all of our stakeholders," added Mr. Furio. "Working with Platinum Equity will make us even stronger and allow us to take the next step in the evolution of our business."
The PrimeSource transaction represents the third acquisition Platinum Equity has completed in the last three months. The firm acquired Enbi, a manufacturer of print rollers and specialty components, in March from Dutch multinational Royal Tencate and acquired Chinese manufacturer Ying Shing Enterprises in April. A fourth transaction, the proposed acquisiton of Worldwide Flight Services, was announced in April and is expected to close by the end of June.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity (www.platinumequity.com) is a global investment firm with more than $6 billion of assets under management and a portfolio of more than 30 operating companies that serve customers around the world. In 2014, Platinum Equity portfolio companies generated more than $17 billion in revenue. Platinum Equity specializes in mergers, acquisitions and operations -- a trademarked strategy it calls M&A&O® -- acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 20 years Platinum Equity has completed more than 150 acquisitions.