Newspaper article THE JOURNAL RECORD

Equity Firm Buys Broken Arrow Building Materials Distributor

Newspaper article THE JOURNAL RECORD

Equity Firm Buys Broken Arrow Building Materials Distributor

Article excerpt

Charlesbank Capital Partners acquired majority ownership in Broken Arrow-based building materials distributor Cedar Creek for an undisclosed price.

Through this asset purchase and capital investment, Boston-based Charlesbank intends to fuel Cedar Creek's expansion, both organically and through acquisition, as the national economy improves.

"We're expecting improvements in both fronts over the next three to five years," said Maura Turner, vice president of communications for Charlesbank.

Considered the nation's largest cedar distributor, Cedar Creek supplies lumberyards and building supply retailers across a 13- state area. With eight locations in seven states, employing a staff of 400, founder Clark Wiens projects sales of $500 million this year, about even to 2009 results.

"It's been a tough two years, but we never lost money," said Wiens, who worked 18 months with Tulsa merger and acquisition consultants ClearRidge Capital to secure this recapitalization effort. "We just kind of hung in there."

William Adams was named chairman and chief executive of Cedar Creek. The equity firm has a long history with Adams, first recruiting him 18 years ago to reorganize ABTCO, a manufacturer of hardboard-based, vinyl and fiber cement siding, gable vents, and other specialty building products. Adams also has served Louisiana Pacific Corp., Masonite Corp. and Trussway.

"I've known Bill for about 20 years," said Wiens. "He's just been a guy that I've always had good relations with."

Charlesbank will retain not only Wiens and Cedar Creek co- founder David Bond, but fellow executive D. Wayne Trousdale in senior positions.

With more than $2 billion of capital, Charlesbank typically invests from $50 million to $150 million in management-led buyouts and growth capital financing. It targets firms with enterprise value of $100 million to $750 million, its portfolio ranging from Blacksmith Brands and Animal Health International to Aurora Organic Dairy and Captain D's Seafood. …

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