CliftonLarsonAllen (CLA) has revealed it served as the exclusive financial advisor to Minnesota-based lumberyards Foley Lumber and Milaca Building Center on its sale to national building materials distribution platform American Construction Source (ACS).
Foley and Milaca are lumber and building material (LBM) retailers located in the towns of Foley, Minnesota, and Milaca, Minnesota. The Companies serve a range of customers comprising professional contractors, custom homebuilders, as well as DIY consumers.
American Construction Source is an LBM distributor with 70+ locations in nine states serving the needs of custom home builders, repair and remodel contractors, and DIY consumers.
Foley and Milaca are owned and operated by cousins Chris Kotsmith and Randy Kotsmith. The businesses have been owned by the Kotsmith family for four generations.
Chris Kotsmith and Randy Kotsmith said: “We are confident ACS is the best partner to help accelerate growth by delivering more value-added products and an expanded portfolio of services in North Central Minnesota and the greater Minneapolis-St. Paul metro area.
“We’re in awe of the talent of the CLA team that was assembled. Every day was a learning experience and CLA impressed us with their ability to problem-solve. Everyone worked together to make the end result very successful for our family-owned business.”
Paul Novak, managing director in CLA’s investment banking group, said: “Finding the right buyer was very important to Chris and Randy. ACS saw the value in what the Kotsmith family had built over generations, and just as importantly, was best positioned to grow the business and create additional opportunities for Foley and Milaca’s employees into the future.”
Legal counsel for Foley and Milaca was provided by Ryan Gerads, Edward ‘Teddy’ Fleming, and Meaghan Kwan of Lathrop GPM LLP. Quality of Earnings advisory was provided by CLA and led by Craig Arends and Katelyn Kerfeld. Tax advisory was provided by Aaron Traut of CLA.