BBH Capital Partners, the private equity strategy of Brown Brothers Harriman, is exiting The Granite Group after the distributor agreed to be acquired by Watsco. The terms of the deal were not disclosed.
Headquartered in Concord, New Hampshire, Granite distributes plumbing and HVAC products to around 11,000 customers in New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island and New York from 82 locations. The company offers about 29,000 SKUs sourced from more than 450 vendors.
During BBHCP's ownership, Granite expanded its geographic footprint, customer base and product offering, adding more than 35 net new branches through organic growth and acquisitions. The company has achieved compound annual sales growth of about 10 percent since 2010.
"The sale to Watsco represents an excellent outcome for the company, the Condron family, and our investors," said Brad Langer, partner of Brown Brothers Harriman and co-manager of BBHCP. "It is also a strong validation of our strategy of partnering with growing family- and founder-owned businesses."
BBHCP was Granite's first outside equity partner. The firm targets platform investments of $50 million to $150 million, focusing on institutional equity capital for founder-, family- and management-owned businesses. Houlihan Lokey served as exclusive financial adviser and Ropes & Gray as legal counsel to Granite.
Source: PE Hub · Summarized by HeadlinesBriefing