Clayton, Dubilier & Rice — the private investment firm behind some of the biggest distribution and industrial manufacturing transactions over the past decade — announced Nov. 21 that it has appointed current White Cap CEO John Stegeman as an operating advisor to CD&R funds, effective Dec. 1.

The news follows White Cap’s Sept. 26 announcement of a CEO succession plan that will see Stegeman retire on Jan. 28, to be succeeded in that role a day later by current White Cap president Alan Sollenberger.

White Cap was No. 8 on MDM’s 2023 Top Building Materials/Construction Supplies Distributors List.

CD&R acquired HD Supply’s White Cap unit in October 2020 in a deal valued at approximately $4 billion and promptly combined it with another distributor it owns, Construction Supply Group, to form a new White Cap company with over $4 billion in combined revenue.

CD&R said Stegeman will work alongside the firm’s Industrials team to help pursue new investment opportunities and support portfolio company management teams as they executive value creation plans.

Stegeman has more than three decades of industrial distribution experience, including the past 13 leading White Cap (he was Executive President of HD Supply – White Cap from 2010-2020). 

“John has been a highly respected leader in the industrial distribution sector for over 35 years and we have had the privilege of working with him at two CD&R portfolio companies, White Cap and HD Supply,” CD&R Chief Executive Nate Sleeper said in a news release. “We believe John’s industry-leading capabilities and experience position him well to help our portfolio companies in this sector achieve expansion and long-term sustainable performance. We are excited to work with John as we continue to deepen our presence across the sector.”

Prior to White Cap, Stegeman was President and CEO of plumbing, HVAC and industrial supplies distribution giant Ferguson Enterprises from 2005 to 2009, having worked his way up through the company after starting his career there in 1985.

“I’m thrilled to work with CD&R, having long held an appreciation for the firm’s strong partnership culture and 45-year history supporting innovative management teams at growth-oriented companies,” Stegeman added. “I look forward to working with the CD&R team to help build market-leading businesses in the industrials sector.”

In just the past several years, CD&R’s activity has included its pending acquisition of packaging and JanSan supplies distributor Veritiv for $2.3 billion; the sale of all its Beacon Roofing Supply Series A Preferred Stock back to Beacon for $800 million; the acquisition of exterior building products manufacturer Cornerstone Building Brands for $5.8 billion; the acquisition of heating and plumbing distributor Wolseley UK for $418 million; and the acquisition of ERP software provider Epicor for $4.7 billion.

In March of 2023, CD&R appointed former Ball Corp. CEO John Hayes as a fellow operating advisor in its Industrial team.

This past summer, CD&R closed on its largest-ever funding round, totaling $26 billion in new investment.