LOS ANGELES — Platinum Equity today announced it has completed the acquisition of PrimeSource Building Products, Inc. from ITOCHU Corporation. Financial terms were not disclosed.
PrimeSource, headquartered in Irving, Texas, is the largest distributor of construction fasteners and one of the largest distributors of non-lumber building products in North America. Platinum Equity is a global private equity firm currently investing from a $3.75 billion buyout fund focused on acquiring businesses that can benefit from the firm’s operation expertise.
Platinum Equity partner Jacob Kotzubei, who leads the team that pursued the acquisition, said several factors make PrimeSource an attractive investment opportunity.
“PrimeSource is one of the leaders in the industry with an impressive global network, strong customer relationships and well recognized brands,” said Mr. Kotzubei. “We believe the company is well positioned for growth, both organically and through prospective add-on acquisitions.”
Platinum Equity’s operations and M&A teams are working closely with PrimeSource co-CEOs David Fishbein and Bob Furio on long-term strategic plans.
“PrimeSource is one of the leaders in the industry with an impressive global network, strong customer relationships and well recognized brands. We believe the company is well positioned for growth, both organically and through prospective add-on acquisitions,” said Platinum Equity Partner Jacob Kotzubei.
“We are excited about the transition to new ownership,” said Mr. Fishbein. “The partnership with Platinum Equity will be a catalyst for PrimeSource to provide even greater value to our employees, customers and vendor partners than ever before.”
“This is a terrific opportunity for PrimeSource and all of our stakeholders,” added Mr. Furio. “Working with Platinum Equity will make us even stronger and allow us to take the next step in the evolution of our business.”
The PrimeSource transaction represents the third acquisition Platinum Equity has completed in the last three months. The firm acquired Enbi, a manufacturer of print rollers and specialty components, in March from Dutch multinational Royal Tencate and acquired Chinese manufacturer Ying Shing Enterprises in April. A fourth transaction, the proposed acquisiton of Worldwide Flight Services, was announced in April and is expected to close by the end of June.
Source: Platinum Equity