Exclusive: Monomoy in advanced sale process for concrete manufacturer Cast-Crete, sources say
Monomoy Capital Partners is in the advanced stages of a sale process for 2021 portfolio company Cast-Crete, a national manufacturer of pre-cast concrete window sills and lintel products used by residential building contractors, four sources briefed on the matter told PE Hub.
Jefferies launched a sale process review of the Seffner, Florida-based company in late spring. The $60 million EBITDA company will appeal to a manufacturing-focused PE firm or a wide net of strategic buyers, two of the sources said.
Building products companies have fetched a median 14x EV/EBITDA multiple over the past few years, SIPA privateMetrics data shows. That multiple would give Cast-Crete a valuation of $850 million.
Cast-Crete has a dominant market share in the Southeast concrete sills and lintels market, and the Florida company could do well in a strategic acquisition based on its strong margins tied to the Southeast residential building market, one source said.
Founded in 1955, Cast-Crete is the largest US producer of structural lintels and window sills, while its other products include parking bumpers and scuppers. Its products account for less than 1 percent of the total cost to build a new single-family home, but are critical as load-bearing support for doorways and windows.
To meet building code regulations in hurricane-prone regions such as Florida, Cast-Crete’s concrete products are used to replace wooden support beams in historic buildings and new constructions.
Including its 2021 acquisition by Monomoy, Cast-Crete has been owned by three private equity firms since 2014, with Stonebridge Partners and Washington Partners the others.
PE Hub has been following some building products distributors that have come up for sale this year, as sources told us about in a May On the block report.
For more intel on Monomoy’s interest in housing and the building products market, check out this 2022 interview PE Hub’s editor-in-chief MK Flynn conducted with Jaime Forsyth, partner and head of investments at Monomoy. Forsyth is on Cast-Crete’s board of directors.
Monomoy Capital declined to comment. Jefferies did not respond to a request for comment.
