Add-on Acquisition Strengthens KPP Portfolio Company
Cleveland, OH – Key Principal Partners (KPP), a $1 billion private equity firm, announced today that its portfolio company, Honsador Holdings, LLC, has acquired Aloha Lumber Corporation. Senior debt financing was provided by a group led by First Hawaiian Bank.
The acquisition allowed Aloha Lumber’s ownership team to move on to new endeavors. Honsador intends to retain all of the non-owner management team. In 2004, KPP, along with Honsador management, acquired Honsador Lumber from its owner. KPP has a controlling stake in the company.
Honsador Holding, LLC, which owns Honsador Lumber, Ariel Truss and Honolulu Wood Treating, is the largest building materials supplier in Hawaii. The Honsador group serves professional builders and contractors on a statewide basis. Aloha Lumber, based in Kapaa, Kauai, is one of Kauai’s largest building products distributors.
“We are pleased that Honsador has grown and improved its product delivery capabilities since our initial investment. We believe that the acquisition of Aloha will further strengthen Honsador’s capabilities and we look forward to identifying additional growth opportunities for Honsador,” said Tim Fay, Partner at KPP. “We believe that this acquisition only improves the ability of Honsador to help its clients continue to successfully grow with the Hawaiian economy.”
About Key Principal Partners
Key Principal Partners (KPP) is a nationally recognized private investment firm providing capital to middle market companies throughout North America. KPP utilizes mezzanine and equity capital to fund the growth, buyout, refinancing or acquisition of profitable companies. In addition, KPP provides liquidity to shareholders of privately held stock. Distinctively, KPP’s flexible approach to structuring investments does not require control of companies. KPP has approximately $1 billion in capital under management and can invest $5 million to $25 million in companies with at least $20 million in revenue. Headquartered in Cleveland, KPP is affiliated with KeyCorp, a $90 billion financial services firm and has offices in Boston, Greenwich and San Francisco. Visit us at www.keyprincipalpartners.com.