March was notable in the size of deals in the building materials and construction products sectors. Among the biggest deals, Ferguson completed the sale of Stark Group, its Nordic building materials distribution business, to an affiliate of Lone Star Funds, a global private equity firm, for €1 billion (US$1.2 billion).
Ferguson said in 2017 it would divest its Nordic division, part of a number of changes at the distributor that included rebranding from Wolseley to Ferguson plc and appointing a new CEO for its U.S. business, Ferguson Enterprises. In the year ended 31 July 2017, Stark Group generated sales of €2.2 billion (US$2.6 billion).
Bluelinx Holdings agreed to acquire Cedar Creek, a building materials wholesaler serving 32 central U.S. states from Canada to Mexico, for $413 million. Combined revenues for the companies in 2017 was $3.2 billion.
HD Supply Holdings completed its acquisition of A.H. Harris Construction Supplies for $380 million, announced in January. The largest transaction for HD Supply Construction & Industrial, the deal expands its national footprint, with an ability to attract more large, regional and national customers as well as consolidate purchases – and to some degree inventories – across its supply base. Within the region, the combination strengthens the combined companies’ marketing and merchandising capabilities.
Here are other key deals that occurred in March 2018: