Spray Foam Contractor Acquired
United Subcontractors, Backed by Hennessy Capital, Buys Southern Foam
Positive construction trends help drive deals by Meridian, ABC Supply and Hardwoods Distribution
August 31, 2016
United Subcontractors Inc., provider of residential and commercial construction services, has acquired Southern Foam and Coating, an insulation contractor.
The deal will help United Subcontractors solidify its new business in the Southeast U.S., says Bill Varner, company CEO. Southern Foam and Coating is based in Claxton, Georgia, with five operating locations in Georgia, North Carolina and South Carolina, and annual net revenues of more than $9 million. United Subcontractors, headquartered in St. Paul, Minnesota, has more than 42 locations in 15 states, with more than 1,700 employees
United Subcontractors is backed by Hennessy Capital Acquisition Corp. II (Nasdaq: HCAC, HCACU and HCACW), which is in the process of acquiring the outstanding capital stock of the company. Besides construction services, the company also provides installation and distribution services.
The uptick in new home sales is driving M&A in the construction sector. According to the U.S. Census Bureau, sales of new single family homes rose to 654,000 in July from 582,000 in June. Recent construction-related M&A activity has included Meridian General Capital buying PowderCoat Services Inc., which provides coating services to construction, automotive, consumer and electronics sectors. Also, ABC Supply Co. agreed to acquire L&W Supply—distributor of drywall, ceiling tiles and steel framing materials to building contractors– from USG Corp. (NYSE: USG); and Hardwoods Distribution Inc. (TSX: HWD) acquired Rugby Architectural Building Products.
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