GulfStar Group Announces the Sale of ISC Building Materials, Inc.
Phone: (713) 300-2030
Phone: (713) 300-2061
HOUSTON, March 28, 2011 — GulfStar Group, Inc. (“GulfStar”) is pleased to announce the sale of the assets of the interior building products division of ISC Building Materials, Inc. (“ISC” or the “Company”) to ISC Acquisition Corp., Inc. via a directly negotiated sale under Chapter 11 of the U.S. Bankruptcy Code. GulfStar served as exclusive financial advisor to ISC throughout the transaction, which closed on March 7, 2011. GulfStar also advised ISC regarding the January 2011 divestiture of its hardware and lumber division to a private investor group and served as Chief Restructuring Advisor throughout the Company’s administration period.
Headquartered in Dallas, Texas, ISC is a leading supplier of construction materials and supplies used in the interior completion of residential and commercial construction projects. Operating from six drywall yards and one lumber yard, the Company is the largest independent supplier of interior construction materials in Texas. The Company’s ability to provide delivery and stocking services to logistically challenging projects, knowledgeable sales staff, competitive pricing and commitment to customer service help distinguish the Company as the premier provider of interior construction materials to more than 2,100 commercial and residential contractors. After closing yards in several secondary markets in the months surrounding its Chapter 11 filing, ISC continued operating all remaining locations as going concerns through the sale date.
The GulfStar transaction team included Managing Director Bryan Frederickson, Vice President Brian Lobo, Associate Chase Stanzel and Analyst James Berry. GulfStar Managing Director Chris Williams served as court-approved Chief Restructuring Advisor to the Company from shortly after its Chapter 11 filing in August 2010 through confirmation of its plan of reorganization in February 2011. “ISC has substantial market share and an outstanding reputation for quality service throughout the state of Texas. Like many other companies exposed to housing and construction that expanded rapidly through the mid and late 2000s, it unfortunately was unable to downsize the operating platform and rationalize inventories quickly enough to address the speed and depth of the market contraction,” said Mr. Frederickson. “I believe that this sale addresses the business’s balance sheet issues and places the acquirer in an optimal position to quickly leverage this market share and capitalize on an economic recovery that is expected to be particularly strong in the Southwest residential and commercial construction markets.”
GulfStar Group is a leading middle market investment and merchant bank headquartered in Houston, Texas. The firm specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, restructuring and turnaround advisory services and general corporate financial advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed more than 470 assignments across a variety of industries. Through its merchant banking affiliate, the firm also makes equity and subordinated debt co-investments.