TowerBrook Pursues Building Products Investments
The New York and London private equity firm named building products vet Frank Riddick III advisor
May 30, 2008
TowerBrook Capital Partners, a New York- and London-based private equity firm, has tapped 15-year veteran building products executive Frank Riddick III to serve as an advisor to the firm and assist it with exploring investment opportunities in the building products area.
The time couldn’t be riper to pursue deals in the building materials space, according to Riddick. “I think you’re going to see a combination of a natural industry consolidation, valuations coming down and restructuring activity that is going to force some properties to change hands.”
Riddick, 51, brings a well-tenured background in building materials as well as operations experience to TowerBrook. Most recently, he was president and chief executive of Formica Corp., a Cincinnati-based company he joined in 2002 and where he oversaw its restructuring and acquisition by private equity firms Cerberus Capital Management and Oaktree Capital Management in 2004 out of bankruptcy. In May 2007, New Zealand’s Fletcher Building purchased the Ohio maker of surfacing products for $700 million through a process managed by Goldman Sachs.
“He has a strong financial background in addition to an outstanding track record as an operator and has shown an ability to drive growth even in difficult times,” says Robin Esterson, managing director of TowerBrook. “We are confident that his industry experience will prove invaluable to TowerBrook as we explore opportunities within the building products and distribution areas.”
Riddick, an MBA graduate of Duke University, will work for TowerBrook from Dallas, where he resides.
Previous to Formica, Riddick served as president and chief operating officer of Armstrong World Industries, which he joined in March 1995 as chief financial officer. In March 2000, he became president and chief operating officer of Armstrong and managed the company’s international expansion before joining Formica.
Riddick also worked at General Motors, which he joined in 1980 and where he remained until March 1987, having served as regional treasurer for GM in Brussels. He left GM to join Merrill Lynch, where he worked in Treasury as well as investment banking and M&A for the next three years.
The retention of an experienced business executive to pursue investments within a specific sector isn’t new for TowerBrook, which makes majority-stake investments in middle-market and large companies. In March, it announced that it had joined with seasoned restaurant executive Anthony Wedo, a 25-year industry veteran, to source investments in the restaurant sector and assist with related due diligence.
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