Since 2005, the North American residential and commercial construction sectors have by some measures suffered the worst downturn since the Great Depression. In the residential sector, housing starts have plummeted to levels even lower than those experienced in the deep 1982 and 1991 recessions. The severity of the current downturn has created intense financial and operating pressures on manufacturers and distributors of building products. Many industry participants have radically downsized operations and restructured their balance sheets in order to survive.
As the outlook for construction activity shows potential signs of stabilization, business owners and investors confront both challenges and opportunities. The industry knowledge and operational skills of Carbide Partners’ senior professionals provide a valuable resource for owners of building products businesses. For companies under pressure, we can help develop viable restructuring strategies for surviving the downturn. For owners and investors able to focus on growth, Carbide Partners can create a roadmap for expansion and raise the capital needed to acquire and consolidate weaker competitors.
Spurred by a belief that the deep cyclical downturn in the building products sector represents a compelling opportunity for capital appreciation, Carbide Partners is actively seeking private equity investment opportunities in the industry. In 2011, an investment affiliate of Carbide Partners, in partnership with a private equity fund and management, acquired the assets of American Builders Supply, the largest independent supplier of doors, windows and trusses to homebuilders in Florida. Click here for additional information.
Paul Haefcke, Senior Advisor and Head of Carbide Partners’ Building Products Group, has over 40 years of experience as a CEO, senior operating manager and business owner in the building products distribution industry. Mr. Haefcke has been the CEO of two successful private equity-backed consolidators of roofing supply distributors. In his first platform, Mr. Haefcke built the strongest regional distributor of roofing supplies in the Midwest in a six-year period through a series of acquisitions and greenfield branch expansions. In his second buyout, Mr. Haefcke focused on internal growth and operating improvements, nearly tripling the revenues and improving the margins of an underperforming Mid-Atlantic building materials distributorship prior to its sale to a strategic buyer. Mr. Haefcke is currently the CEO of American Builders Supply.