THE DEAL IS PART OF AN ONGOING CONSOLIDATION TREND IN THE DISTRIBUTION INDUSTRY
CHATTANOOGA, Tenn. (May 10, 2017) — FourBridges Capital today announced that Total Building Supplies, Inc., has been sold to Ram Tool Construction Supply. FourBridges Capital — an investment banking firm that helps business owners sell their companies, refinance debt or access growth capital — acted as exclusive advisor to Total Building Supplies (“TBS”).
An Atlanta-based distributor, TBS supplies building products, tools and equipment to multi-unit developers and contractors in the housing, healthcare and educational facility markets. The company serves the greater Atlanta and Jacksonville, Fla., areas, where the multi-family housing sector is experiencing rapid growth.
Ram Tool Construction Supply is one of Alabama's largest privately owned businesses. Headquartered in Birmingham with locations across 12 states, the company provides job site products and services to commercial contractors.
“This is the third consecutive transaction that FourBridges has closed in the distribution industry. It’s part of a much larger consolidation story, which we expect to continue into the foreseeable future,” said Ralph Montgomery, managing director of FourBridges. “The deal is also a testament to the incredible strength of multi-family housing, a primary end market for Total Building Supplies.”
TBS had reached a crossroads when they approached FourBridges: one co-owner was ready to retire, while the other co-owner hoped to continue growing the company but needed additional resources to do so. FourBridges analyzed their financial statements, developed a forecast and compiled a Confidential Information Memorandum that told the company’s story to potential partners. The firm contacted a diverse range of private equity groups and strategic investors, and ultimately, Ram Tool was identified as the best fit.
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC served as legal advisor to Total Building Supplies, and Adams & Reese LLP served as legal advisor to Ram Tool.
“This transaction has allowed Ram Tool to expand its geographic footprint and more heavily target the multi-family housing market, while enabling TBS’s executive team to achieve their personal and financial objectives,” Montgomery said. “It was a pleasure working with both teams, and we expect this new partnership to experience continued growth.”
About Total Building Supplies, Inc.
Total Building Supplies is a premiere building products distributor serving the Atlanta, Ga., and Jacksonville, Fla., markets. The company provides value-added commercial construction and demolition services and supplies building products, tools and equipment to multi-unit developers and contractors.
About FourBridges Capital Advisors
FourBridges represents business owners who are thinking about selling their company, making an acquisition, or refinancing. The partners run a proven process to identify quality buyers, achieve the best value, and close a deal fast.