Construction Supply Group’s $4 Billion Combination With White Cap

McDermott Will & Emery represented The Sterling Group and Construction Supply Group in the transaction. Debevoise & Plimpton LLP has advised Clayton, Dubilier & Rice in the financing aspects of the transaction.

Construction Supply Group finalized its combination transaction with the construction and industrial business of HD Supply Holdings Inc. (NASDAQ: HDS), known as White Cap. Together, the Construction Supply Group and White Cap transactions are valued at approximately $4 billion.

The financing for the transaction includes a $2.38 billion cash flow-based facility, a $700 million asset-based revolving facility and $640 million in senior unsecured notes.

Clayton, Dubilier & Rice will hold a 65% ownership interest in the combined company and The Sterling Group will hold 35% ownership interest. Clayton, Dubilier & Rice, a private equity firm, acquired White Cap from HDS for cash and combined it with Sterling’s Construction Supply Group.

McDermott Will & Emery acted as legal advisor to the Sterling Group, an operationally focused private equity firm, and its portfolio company, Construction Supply Group, with a team led by Greg Metz (Picture) and Mike McStay and included Eric Preston, Nora Klein, Nick Greiner, Alex Ruiz, Josh Lerner, Allison Wilkerson, Josh Samis, Eric Orsic, Jason Krieser, Margaret Cremin, Emily Mussio, Jon Dubrow, Matt Evola, Ashley McMahon, Aileen Cordero, Niraj Patel, Deepak Tamasker.

Debevoise & Plimpton LLP advised Clayton, Dubilier & Rice with a team led by finance partner Jeffrey Ross and included counsel Zahra Sowder, associates Jongmin Char, Alexandra Grossman, Temitayo NeneAqua Umoren and law clerk Alexander Furman.

Involved fees earner: Jongmin Char – Debevoise & Plimpton; Alexandra Grossman – Debevoise & Plimpton; Temitayo NeneAqua Umoren – Debevoise & Plimpton; Jeffrey Ross – Debevoise & Plimpton; Zahra Sowder – Debevoise & Plimpton; Aileen Cordero – McDermott Will & Emery; Margaret Cremin – McDermott Will & Emery; Jon Dubrow – McDermott Will & Emery; Matt Evola – McDermott Will & Emery; Nick Greiner – McDermott Will & Emery; Nora Klein – McDermott Will & Emery; Jason Krieser – McDermott Will & Emery; Joshua Lerner – McDermott Will & Emery; Ashley McMahon – McDermott Will & Emery; Michael McStay – McDermott Will & Emery; Gregory Metz – McDermott Will & Emery; Emily Mussio – McDermott Will & Emery; Eric Orsic – McDermott Will & Emery; Niraj Patel – McDermott Will & Emery; Eric Preston – McDermott Will & Emery; Alejandro Ruiz – McDermott Will & Emery; Joshua Samis – McDermott Will & Emery; Deepak Tamasker – McDermott Will & Emery; Allison Wilkerson – McDermott Will & Emery;

Law Firms: Debevoise & Plimpton; McDermott Will & Emery;

Clients: Clayton Dubilier & Rice; Construction Supply Group; Sterling Group, L.P.;

Author: Ambrogio Visconti