Homewood Holdings Acquires Seattle’s Largest Siding Contractor, Eagle Creek Siding, and Related Manufacturer, Mud Bay Manufacturing
OLYMPIA, Wash.--(BUSINESS WIRE)--Jan 2, 2019--Homewood Holdings LLC (“Homewood”), a portfolio company of the investment firm, Building Industry Partners LLC (“BIP”), has acquired the assets of Eagle Creek Siding, L.L.C. (“Eagle Creek Siding”) and Mud Bay Manufacturing, LLC (“Mud Bay”, collectively “the Company”) from their longtime owners, Jon Hunter and Scott Kramer.
Founded in 1999 and based in Olympia, WA, Eagle Creek Siding is the leading installer of exterior siding in the greater Seattle market, serving local and regional builders of both single-family and multi-family residential projects. Mud Bay is a manufacturer of wood building products, siding accessories, architectural and structural supports, and exterior details for contractors and homebuilders. Combined, the Company employs over 30 people, and through its longstanding, proprietary network of installation subcontractors, brings a total effective labor force of over 150 installers to market for builders in the Pacific Northwest.
Eagle Creek Siding has been a longtime customer and strategic partner of Homewood-owned Evergreen Lumber, the Port Orchard-based distributor of lumber, millwork, siding and other building materials. Together, Eagle Creek and Evergreen have served the turnkey siding and window installation and building materials needs of many of greater Seattle’s leading national and regional homebuilders for nearly 20 years.
Eagle Creek Siding joins the Homewood Holdings family of businesses, as its second investment in Washington state and fourth investment overall. Homewood Holdings acquired Evergreen Lumber in January 2017 as its first expansion into the Seattle market. Together, Eagle Creek Siding and Evergreen Lumber will be able to drive operating efficiencies, and in turn better value and service, for Pacific Northwest homebuilders. Eagle Creek Siding’s network of installation subcontractor relationships represents a critical service offering for homebuilders in a market that continues to suffer from tight labor supply.
Homewood Holdings was formed in April 2016 by BIP and building industry veteran, Jim Stockman, to build a best-in-class, regional pro dealer organization in the West. Homewood Building Supply was the inaugural investment in March 2016. The addition of Eagle Creek Siding and Mud Bay creates a pro dealer distribution and installation platform with six locations in California and Washington, more than 225 total employees, and over $100 million in combined sales.
The transaction addressed succession-planning needs of Eagle Creek Siding’s owners, Jon Hunter and Scott Kramer, following their long and successful careers in the building industry spanning 40+ years. Ron McFarland, who has decades of experience in siding installation management, will continue to lead Eagle Creek Siding as General Manager, along with Jeff Fleury, Operations Manager, Natalie Byrne, Accounting Manager, Rocky Tennison, Estimating Manager, and Travis Houston, Production Team Manager.
Zach Coopersmith, Managing Partner of BIP, said, “We are thrilled to welcome Eagle Creek into the Homewood family of companies. The addition of Eagle Creek will help us better serve customers in the Washington market, and fits Homewood’s acquisition strategy of investing in strong businesses in growing markets, in partnership with proven operators.”
Jim Stockman, Homewood Holdings CEO, commented, “Homewood Holdings is delighted to partner with Eagle Creek and Mud Bay’s Management team. We are committed to supporting operational best practices to continue to build an industry-leading building products supply and installation company.”
Jon Hunter, former owner, commented, “This transition represents an exciting milestone for Eagle Creek. In partnership with Homewood Holdings, we believe Eagle Creek and Mud Bay can accelerate growth while continuing to provide industry-leading siding installation and building products manufacturing services and will continue to be a great place for its employees to work, with strong career advancement opportunities.”
Scott Blackburn, Homewood Holdings Washington Market President, commented, “We are really excited to add Eagle Creek and its industry-leading siding installation capabilities to our portfolio of businesses. The acquisition brings together the Pacific Northwest’s best-in-class siding and building materials supplier, Evergreen Lumber, and market-leading siding installer, Eagle Creek Siding. I’m excited to get to work with Ron and the rest of the team to realize the opportunities we envision for Eagle Creek and Evergreen.”
Homewood Holdings is actively seeking to partner with, and/or acquire, independent pro dealer, component manufacturer and service provider organizations throughout the Western portion of the United States.
Background of Building Industry Partners
Building Industry Partners (“BIP”) is the leading growth equity investment firm focused on the U.S. middle-market building products industry. Founded in 2008, BIP has offices in New York, Boston, and Dallas and is managed by Matt Ogden, Zach Coopersmith, and John Hughes. BIP invests its principals’ own capital, as well as that of a small number of like-minded family office and individual limited partners, including a number of accomplished active and retired building industry executives. BIP maintains a large proprietary network of building products industry operators, thought leaders and service providers that support its industry-focused proprietary opportunity sourcing, due diligence, portfolio company management and value creation efforts.
BIP invests via an “Operator First” model, serving as an equity capital partner to support proven building products industry leaders in building niche-leading businesses. To this end, BIP provides equity capital to: (1) owner-operators of niche-focused building products manufacturers, distributors and specialty service companies seeking capital for growth, liquidity and/or partial ownership transition and (2) proven building industry operators and entrepreneurs seeking to build a business within their niche of expertise, primarily via acquisition of a platform company and execution of organic and/or “buy & build” growth strategies. The Firm focuses primarily on majority or minority ownership investments involving platform companies with $20 to $250 million in revenues as well as smaller companies with unique growth opportunities or as part of larger “buy & build” acquisition strategies.
BIP principals have co-founded and/or served as the equity capital sponsor for a number of the building products industry’s leading middle-market companies and operators, including:U.S. LBM Holdings, now the 3 rd largest pro dealer organization in the U.S., in partnership with L.T. Gibson, BlackEagle Partners and team Kodiak Building Partners, in partnership with Paul Hylbert, Steve Swinney and team Rugby Architectural Building Products, in partnership with David Hughes, Drew Dickinson and team United Cabinet Holdings, in partnership with Butch Reimer and team Building Industry Advisors, in partnership with Michael Collins and Walt Kurek Homewood Holdings, in partnership with Jim Stockman, Scott Blackburn, Keith Elledge and team U.S. Fence Solutions Company, in partnership with Andrew Reed, Steve Stanley, Jeff Cook, Jim Bockelmann and team
BIP continues to seek opportunities to sponsor the building products industry’s greatest operating talents in realizing their entrepreneurial visions.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190102005149/en/
CONTACT: Zach Coopersmith
Building Industry Partners
KEYWORD: UNITED STATES NORTH AMERICA WASHINGTON
INDUSTRY KEYWORD: PROFESSIONAL SERVICES REIT FINANCE CONSTRUCTION & PROPERTY RESIDENTIAL BUILDING & REAL ESTATE OTHER CONSTRUCTION & PROPERTY
SOURCE: Building Industry Partners LLC
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PUB: 01/02/2019 07:00 AM/DISC: 01/02/2019 07:01 AM