After it looked like White Cap founder Greg Grosch was going to take over floundering Orco Construction Supply, White Cap/HD Supply swoops in and out bids Grosch for what is left of the once heavy hitter in the building materials industry. White Cap came in 3 million over Grosch's 14 million dollar offer. Grosch had last look, but apparently White Cap had enough cushion to fend off a final bid.
It is speculated that White Cap was interested in acquiring what assets were left including some inventory, accounts receivable and other misc. items, but probably even more interested in just wiping Orco off the map. Grosch was instrumental in making White Cap a powerhouse throughout the 90's and then cashing out to Home Depot. He would undoubtedly be threat if he were to get back into the game, so it is worth the cash to White Cap to keep Grosch from bringing Orco out of the ashes.
However, I wouldn't say that we have seen the last of Greg Grosch. He appeared back on the scene a few years ago with Wolseley, the parent company of Stock Building. At that time they were looking into developing a building materials unit separate from Stock and similar to W.C. or Orco, with a target of the framing and concrete trades. But before they could get off the ground, Wolseley pulled the plug as the building industry was starting to slide. Next, he and his sidekick Jeff Watt, another HD/WC alum made a go at HCS-Cutler. But once the dust cleared with that BK, there wasn't much left to move forward with. So, when the it was apparent that Orco was going to be on the block, Grosch was foaming at the mouth and put together an investment group and made another run at it. Although it may appear to be strike three for Grosch, it may be a foul tip and Grosch is still at the plate.
Tuesday, May 19, 2009
Thursday, May 7, 2009
Stock Building Supply latest to file Chapter 11
Stock Building Supply has become the latest building materials supply to file Chapter 11 bankruptcy.
Along with the annoucement that they have gone into Chapter 11, Stock Building parent company Wolesley PLC announced on May 6, 2009 that have reached and agreement to sell a 51% stake in Stock to the private equity firm the Gores Group of Los Angeles.
Until this deal surfaced, the future of Stock Building was looking very grim. Wolesley publicly announced in March that if they did not find a suitor they would most likely shut down the entire operation by August of this year. Stock lost $200 million in 2008 and Wolesley just wants to stop the bleeding. The residential building market that has been Stock's core market is showing no signs of improvement and Wolesley has lost patience and hope for a turnaround in the near future.
Like any of these current Chapter 11 cases (HCS-Cutler, ORCO), this is far from a done deal and Stock Building employees should probably continue to look for employment.
Along with the annoucement that they have gone into Chapter 11, Stock Building parent company Wolesley PLC announced on May 6, 2009 that have reached and agreement to sell a 51% stake in Stock to the private equity firm the Gores Group of Los Angeles.
Until this deal surfaced, the future of Stock Building was looking very grim. Wolesley publicly announced in March that if they did not find a suitor they would most likely shut down the entire operation by August of this year. Stock lost $200 million in 2008 and Wolesley just wants to stop the bleeding. The residential building market that has been Stock's core market is showing no signs of improvement and Wolesley has lost patience and hope for a turnaround in the near future.
Like any of these current Chapter 11 cases (HCS-Cutler, ORCO), this is far from a done deal and Stock Building employees should probably continue to look for employment.
Monday, May 4, 2009
Welcome to the So Cal Building Insider
Making a living as a contractor tends to be a feast or a famine in Southern California. In the good times the opportunities are abound, but you still need to know how to play the game and know the business to be successful. In the bad times that we are going through today you are doing well just to keep the doors open, and it is a battle to do just that. The So Cal Building Insider has a network of sources that includes contractors, architects, inspectors, suppliers and just about any other field involved in the building industry. All of whom are experts in their field.
Our mission with the So Cal Building Insider is to provide you with some of the dirt on how to play the game, what's going on in the industry, and some of the gossip going around. It is always our intention to post accurate and verified information. But as mentioned, there will be some gossip. However, we will make it clear in the posts what is gossip, what is fact and what is conjecture. If we can not verify the validity of something, or feel that even the gossip does not seem to hold water, we will refrain from posting it.
We welcome your comments, views or even rebuttals. We do reserve the right to delete any postings or comments that feel deem unsuitable for the So Cal Building Insider. We will only allow content that pertains to the subject and do not want any blatant advertising.
Our mission with the So Cal Building Insider is to provide you with some of the dirt on how to play the game, what's going on in the industry, and some of the gossip going around. It is always our intention to post accurate and verified information. But as mentioned, there will be some gossip. However, we will make it clear in the posts what is gossip, what is fact and what is conjecture. If we can not verify the validity of something, or feel that even the gossip does not seem to hold water, we will refrain from posting it.
We welcome your comments, views or even rebuttals. We do reserve the right to delete any postings or comments that feel deem unsuitable for the So Cal Building Insider. We will only allow content that pertains to the subject and do not want any blatant advertising.
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