Stock Building Emerges From Bankruptcy
Gores Group also provided a $150 million revolving credit facility to the North Carolina company.
July 1, 2009
Stock Building Supply Holdings LLC said Wednesday that it has emerged from bankruptcy with $225 million in new private equity and debt financing.
The Gores Group LLC, a Los Angeles private equity firm, invested $75 million in Stock for a 51% stake in the Raleigh, N.C.-based building materials business. Additionally, Gores provided a $150 million revolving credit facility to the business that had been owned by U.K. plumbing products distributor Wolseley plc.
Stock's purchase is the result of a pre-packaged bankruptcy filing that lets Wolseley retain 49% of the U.S. company along with two seats on its seven-person board. The company decided to sell Stock in order to focus more closely on its core plumbing distribution business in North America and Europe.
Stock Building sells roofing and other home building supplies under the brand names Portrait, ProSelect, Smoot and Kitchen Factor to contractors in 19 markets across the U.S. It generated $3.5 billion in annual sales through July 2008.
The company's top five unsecured creditors included Certaineed Corp., Jeldwen Windows, Moulding & Millwork, Firestone Building Products Co. and Curries.
Judge Mary Walrath oversaw Stock's reorganization, which is filed under case number 09-11554.
Timothy Meyer, managing director of Gores Group, said: "As a result of recent actions, we're confident the company is now well-positioned to operate profitably in the current environment and capitalize on its full potential."
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