Sterling Group Portfolio Company Construction Supply Group Acquires Construction Materials

October 21, 2019

Willkie advised Sterling Group and Construction Supply Group in the transaction.

On October 2, The Sterling Group, a Houston-based middle market private equity firm, announced that its portfolio company, Construction Supply Group, has completed the acquisition of Construction Materials. Operating 16 branches in the Southeastern United States, Construction Materials is a long-established wholesale distributor of specialty building products, primarily for concrete contractors.

The partnership with Construction Materials expands Construction Supply’s geographical presence in important MSAs such as Florida, Georgia, Alabama and Texas, and further enhances its ability to serve customers and partner with suppliers. The acquisition of Construction Materials is Construction Supply's nineteenth acquisition in three years.

Construction Supply Group is a leader in the distribution of specialty construction materials, accessories and tools, primarily for professional concrete and masonry contractors in the United States and Canada. The company holds the number two position in the industry with over 125 branches, approximately 1,600 employees and offering over 60,000 SKUs to nearly 60,000 customers.

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Sterling has sponsored the buyout of 55 platform companies and numerous add-on acquisitions for a total transaction value of over $10 billion, and currently has over $2 billion of assets under management.

The Willkie team was led by partner David Tarr and included associates Grace Aviles, Sam Neill, and Melanie de Marnix.