Hammerhead Distribution Acquires Roofing Materials Supplier Morris Ginsberg & Son, Inc.
NEW YORK (January 2, 2004) – Hammerhead Distribution, Inc. a holding company formed by Paul G. Haefcke, a veteran distribution industry CEO, and Red Diamond Capital, the New York-based private equity firm, announced today the acquisition of Morris Ginsberg & Son, Inc., an independent distributor of roofing and building materials, equipment and supplies. Based in Baltimore, Morris Ginsberg serves commercial and residential contractors in the Maryland, Washington, D.C. and Northern Virginia markets. Building upon a 75-year legacy , the company will operate under the name Morris Ginsberg & Co., LLC with the continued participation of Stanley Holzman, the former owner of the business.
"We're excited at the prospect of working with Stan Holzman and the dedicated employees who are committed to taking the Ginsberg business to the next level," said Paul Haefcke, Hammerhead's Chief Executive Officer. "We plan to immediately expand the company by opening a satellite operation in Northern Virginia to better service current commercial roofing customers and residential contractors," Mr. Haefcke added. Two seasoned industry executives, James C. Murray and Paul J. Whelan, have joined the Hammerhead team and have assumed day-to-day management responsibilities for Ginsberg. Both have extensive experience in the company's served markets.
"I'm looking forward to working with Hammerhead and being associated with a group whose philosophy is to keep the historic legacies of companies like Ginsberg together," said Stanley Holzman, who ran the company since 1980. "They will bring the resources necessary to aggressively grow this business."
Paul G. Haefcke and Red Diamond Capital formed Hammerhead Distribution in October 2003 as a holding company to acquire established, North American distributors of roofing, siding, windows, doors, and other specialized building materials for residential and commercial construction. Hammerhead's philosophy is to retain the individual identities and, to the greatest extent possible, the people of the acquired companies while implementing disciplined management practices and leveraging an administrative infrastructure. Hammerhead targets independent distributors willing to partner with a sophisticated, strategic owner committed to growth with capital backing from the Red Diamond fund and seasoned management supplied by Mr. Haefcke and his executive team.
Mr. Haefcke was the founder and former CEO of Shelter Distribution, Inc., a highly successful build-up of roofing, siding and window distributors based in the Midwest, before its sale in 2002 to an industry group.
Peter B. Pfister, a managing director of Red Diamond Capital and the former financial sponsor behind Mr. Haefcke in Shelter Distribution, commented: "Red Diamond is delighted to have Paul Haefcke head this new venture. He's spent thirty years in the industry and has a terrific record of driving top and bottom line growth. Importantly, we have a history of working together in buying and building successful companies. We're excited by the prospects of building around the established franchise of Morris Ginsberg. We foresee continued strength in the building cycle, notwithstanding recent up ticks in interest rates, and it is clear that there are further acquisition and consolidation opportunities."
Morris Ginsberg was founded over 75 years ago. The company is a full-service, customer-oriented regional distributor of roofing and building materials, equipment, and supplies for commercial, residential, and industrial projects operating in the Maryland, Washington, DC and Northern Virginia markets. For more information visit morrisginsberg.com.
Formed in 2002, Red Diamond Capital is an independent $150 million private equity fund that invests in middle market distribution, manufacturing and service businesses in North America. With its committed capital provided primarily by Mitsubishi Corporation, Japan's leading trading company, through its subsidiary, Mitsubishi International, Red Diamond offers a unique mix of strategic resources, industry-focused capital and management expertise to fuel the growth of its portfolio companies. Headquartered in New York, the company may be found on the web at reddiamondcapital.com.
