The Penrod Company
The Penrod Company (‘Penrod’ or the ‘Company’) is a leading provider of a broad selection of wood, metal and polyvinyl chloride specialty building products sold through both distribution and original equipment manufacturer channels domestically and internationally. With a rich history dating back to 1888, Penrod maintains a manufacturing, distribution and/or sourcing presence on five continents including the U.S., Canada, France, Russia, China, Africa and Brazil. Penrod’s unique customer value proposition is characterized by offering an unparalleled variety of globally sourced, high-quality products supported by superior customer service which has enabled Penrod to become one of the largest providers of hardwood plywood products and components in North America.
In 2008 and the first half of 2009, Penrod’s business suffered from the overall weak demand in the building materials industries, particularly for those serving the residential housing market. The Company executed several operational improvements in 2009 and positioned the business for a dramatic rebound in revenue and profitability experienced beginning in the second half of 2009.
BB&T Capital Markets and SSG Capital Advisors (the ‘Advisors’) were jointly retained as exclusive investment bankers to recapitalize the business. To that end, the Advisors helped negotiate an extension with the existing bank group that provided time to execute a refinancing transaction that ultimately closed in August 2010. The Advisors delivered a $23.3 million revolving credit facility which provided an exit for the existing bank group as well as additional liquidity to allow the Company to continue on its path of growth.