Insulation Distributor SIG/USA Sold to Investor - Modern Distribution Management

Insulation Distributor SIG/USA Sold to Investor

Private equity firm Grey Mountain Partners, Boulder, CO, is acquiring the U.S. industrial-products distribution unit of British building products supplier SIG plc for $51 million in cash. The business is a distributor of industrial products with 300 employees in more than 20 branch locations from Texas to Maryland and more than $130 million in annual revenue.


SIG has three primary business units: insulation, roofing and commercial interiors, and specialist construction and safety products. The U.S. operations include several businesses, including SIG Southwest serving gulf coast markets, and BWI Distribution, Inc. serving east coast markets. BWI was founded in 1957 and became a subsidiary of SIG/USA in 1999.



Grey Mountain Partners plans to make additional investments into distribution sectors, according to Senior Associate Ben Ault. ‘The strategy will be to grow organically by outperforming the competition through best-in-class customer service and also to grow through selective, strategic add-on acquisitions. The U.S. business of SIG plc is already a well-established market leader, but the U.S. market was not a priority for the U.K. parent.

We believe the Grey Mountain approach towards working with management to develop aggressive but realistic growth plans will have a positive impact on their efforts to expand and better serve the customer base.’


The deal was funded with an asset-based senior loan through Bank of America NA, and equity. The sale resulted from an auction run by Cobblestone Advisors, a division of investment banking firm Harris Williams & Co., Richmond, VA, and the financial adviser to SIG.



‘Our rate of growth and expansion in the UK, Ireland and Mainland Europe has been such that the U.S. today accounts for less than 4 percent of total Group sales,’ said David Williams, chief executive of SIG. ‘Given the future opportunities for SIG within the UK, Ireland and Mainland Europe, our strategy is to concentrate our resources towards these territories. On this basis, it makes sense for the U.S. business to be allowed to develop outside the SIG Group.’ SIG realizes 68 percent of its revenues from the UK and Ireland, with 28 percent Mainland Europe.

More Breaking News

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.