The Business

Rocky Mountain Forest Products Corp. (RMFP) is a leading manufacturer of high quality, small-pattern wood mouldings. Architects, builders and interior designers use small-pattern wood mouldings to add character to plain rooms. They enhance walls, windows, floors, doorways, and fireplaces, and can be used to break up a room horizontally, cover rough edges, hide flaws, or add a finished appearance to design transitions.

 

The company markets its products to building material distributors located throughout the United States. RMFP’s customers sell to building contractors, lumberyards and home improvement centers such as The Home Depot and Lowe’s. The company’s customer base covers the do-it-yourself (DIY) market and professional contractors, carpenters and other tradesmen.

The Industry

The millwork industry, and more specifically the moulding market, is experiencing consolidation among the sources of end-user supply. The shrinking market for finished goods is putting pressure on manufacturers to merge and gain market share in order to compete for the business of larger customers (e.g., The Home Depot and Lowe’s). Size and scale of a producer in the millwork industry will largely dictate its bargaining position with customers and suppliers.

The Process

Prestwick Partners initiated this transaction and acted as exclusive financial advisor to RMFP (Laramie, WY). Prestwick Partners designed an M&A process, prepared marketing materials, evaluated acquisition proposals and negotiated the transaction with Valor Equity Partners. Prestwick Partners previously represented Tewa Moulding (Albuquerque, NM), Lynch Investment Company (Dallas, TX) and Private Equity Partners (Ft. Worth, TX) in the sale of Tewa Moulding to Valor Equity Partners.