White Cap Supply Holdings and Construction Supply Group (CSG) have announced a new partnership. The combined transaction, valued at approximately $4 billion (including an investment by Clayton, Dubilier & Rice funds) creates a top North American distributor of a diverse mix of concrete accessories and specialty construction supplies. This includes revenues of more than $4 billion, annually.
White Cap and CSG have highly complementary product offerings and geographic footprints, aligned cultures and strong talent focused on providing exceptional customer service to professional contractors. White Cap serves as a one-stop-shop, providing concrete accessories and chemicals, tools, and equipment, building materials and fasteners, waterproofing, and safety products to professional contractors.
CSG offers enhanced construction solutions. Following the transaction, CD&R funds hold a 65% ownership interest in the combined company, and the prior shareholders of CSG, led by The Sterling Group, hold a 35% interest.
John Stegeman, CEO of White Cap, and Alan Sollenberger, president of White Cap, will lead the combined business.
“Both White Cap and CSG share the same vision of continuous growth with the goal to relentlessly improve customer service,” said Stegeman. “By joining together, our platform allows expansion of our product and service offerings across more than 400 locations in 46 U.S. States and eight Canadian provinces. Our goal is to provide even greater value for our customers and enhance our ability to serve with excellence. This is an incredibly exciting time for our associates, customers, and suppliers.”
The combined strength of White Cap and CSG will include:
- A comprehensive offering of 400,000+ products from more than 4,500 suppliers
- An outside sales force of over 850 associates with significant industry experience
- More than 1,000 inside and counter sales associates to deliver on our promise of two-hour ready will call at our locations
- Nearly 2,000 delivery vehicles to enable our same day or next day service to job sites
“Both businesses have incredible histories of exceptional customer service,” said Sollenberger. “As we join together, we will continue to build on our vast experiences and stronger future by investing in focused local growth initiatives with the support of our national platform.”