Blue Wolf Capital Announces Sale of Novo Building ProductsJune 28th, 2021 by Editor
Blue Wolf Capital Partners, a New York-based private equity firm, recently announced that it has entered into a definitive agreement to sell Novo Building Products LLC to Hardwoods Distribution Inc., a large, North American distributor of architectural grade building products to the residential, repair and remodel, and commercial construction industries.
Headquartered in Zeeland, Mich., Novo is a manufacturer and value-added distributor of mouldings, millwork, stair parts and other specialty building products to national home retail centers and building material dealers.
Blue Wolf acquired Novo in 2016 from Tenon Limited, a New Zealand-based public company. In 2019, George Judd, a strategic advisor with a successful track record as a building products industry executive, was appointed CEO of Novo. Under his leadership, the company accelerated its value creation plan and prepared for long-term growth.
“Today marks an exciting day for Novo, and underscores the great progress we have made in partnership with Blue Wolf to significantly improve the company’s operational and financial performance and build upon its leadership position in the specialty building products sector. I am confident that HDI is the ideal long-term owner for Novo and expect that our employees will benefit from new opportunities as part of HDI’s larger platform. In addition, I am optimistic about the growth opportunities that lie ahead for Novo and HDI. Our complementary portfolio of product offerings will deliver significant value to our customers and other stakeholders,” said Judd.
“Under George’s leadership, the Novo management team executed a set of strategic initiatives that expanded the company’s footprint, diversified its product offering and improved its operational performance, creating a substantially larger, more diversified and more efficient enterprise,” added James Shovlin, vice president of Blue Wolf.
The transaction is expected to close in late July or early August 2021, subject to completion of all necessary regulatory approvals and satisfaction of all closing conditions under the definitive agreement.
“This transaction represents an outstanding outcome for Blue Wolf and our LPs, as well as for Novo and its stakeholders, including its employees,” said Adam Blumenthal, managing partner of Blue Wolf. “Our experience with Novo demonstrates the value that Blue Wolf brings in transaction execution and as an owner. Our investment involved a highly complex carve-out from a publicly traded, international corporation. Over the course of the last five years, we leveraged our experience in the building products sector and effectively utilized our operating resources to advance the company’s position as an industry leader. I want to thank the entire Novo management team and the company’s more than 1,400 employees for their immense contributions in these efforts. We look forward to following Novo in its next phase of growth as it joins forces with HDI.”