News

Sales

May 30, 2017

The Sterling Group Agrees to Sell DexKo Global Inc. to KPS Capital Partners

The Sterling Group, an operationally focused middle market private equity firm, today announced a definitive agreement to sell DexKo Global Inc. (“DexKo”) to funds managed by KPS Capital Partners, LP.   Financial terms of the transaction were not disclosed.

DexKo is the leading global supplier of highly engineered running gear technology, chassis assemblies and related components with over 130 years of trailer and caravan componentry experience. The company is headquartered in Novi, Michigan and employs over 4,500 employees with 39 manufacturing facilities and 25 distribution centers across the globe. Sterling formed DexKo at the end of 2015 through the combination of Dexter Axle and AL-KO Vehicle Technology.

“Sterling’s partnership with the deep and talented management team at DexKo has resulted in a complete transformation of the business over the last several years,” said Kevin Garland, a Partner at The Sterling Group.  “We look forward to the company’s future success in the years to come.”  Sterling will continue to own a minority stake in DexKo.

Completion of the transaction is expected in mid-2017 and is subject to customary closing conditions and approvals. Goldman Sachs and J.P. Morgan Securities LLC served as financial advisors to DexKo.  Harris Williams & Co. acted as a special advisor to the Board, and Willkie Farr & Gallagher acted as legal counsel.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 51 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.



Acquisition

May 03, 2017

Construction Supply Group, A Portfolio Company of The Sterling Group, Acquires Five Gerdau Construction Products Branches

The Sterling Group, a Houston-based middle market private equity firm, announced the acquisition of five distribution branches from Gerdau Construction Products. The branches will become a part of Sterling’s portfolio company, Construction Supply Group.

Construction Supply Group is a leader in the distribution of construction materials, accessories and tools, primarily for professional concrete and masonry contractors in the United States and Canada. The combined company has 53 branches with 850 employees and offers over 70,000 SKUs to nearly 25,000 customers.

In late 2016, Sterling acquired Brock White Company, LLC, Border Construction Specialties, LLC and Stetson Building Products to form Construction Supply Group. Brock White, Border and Stetson each have strong branch footprints in Western Canada, the Upper Midwest and the Southwest.  The acquisition of the five Gerdau branches in Appleton, Wisconsin; Madison, Wisconsin; Decatur, Illinois; Urbana, Illinois and Eldridge, Iowa will allow Construction Supply Group to further serve customers in those territories.

“The Gerdau branch additions will further strengthen our footprint and ability to provide exceptional service to customers. We look forward to partnering with the Gerdau employees as we continue to build the platform,” said Mitch Williams, CEO of Construction Supply Group.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $750 million. Sterling has sponsored the buyout of 51 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.