Moss Adams, via its affiliate, Moss Adams Capital, served as the exclusive financial advisor to Mandere Construction, Inc. and Northwest Building Components, Inc. in a sale of a majority stake to Kodiak Building Partners.
Mandere Construction and Northwest Building Components both operate from a single, 12-acre location in Rathdrum, Idaho and service the broader Spokane-Coeur d’Alene metropolitan area. Together, the two companies provide wall panels and floor and roof trusses as well as framing and installation services for single family, multi-family, and commercial construction. John Mandere will continue in his role of president and has become a substantial investor in Kodiak Building Partners.
Kodiak Building Partners, through its 81 locations, serves general contractors, homebuilders, sub-contractors, remodelers, and consumers with its operations in Arizona, California, Colorado, Delaware, Florida, Idaho, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Texas, Nebraska, Washington, Wisconsin, and Wyoming.
Following this transaction, John is looking forward to having the freedom to focus on the aspects of his business for which he has passion and expertise, while enjoying the benefit of Kodiak’s back-office support in areas such as finance, HR, and IT. John said, “I can’t wait to get back to more customer-facing activities. My local touchpoints are a large part of Mandere’s success and having the ability to again concentrate on what really matters to our customers can only mean more growth and profitability.”
Steve Swinney, Kodiak’s CEO, sees Mandere as a strong addition to Kodiak’s growing presence in the Pacific Northwest. “We’re thrilled to have John and his team join the Kodiak family as his experienced workforce are the go-to experts in wood construction in the Spokane-Coeur d’Alene market. We expect their products and services to nicely complement our other companies in the region,” the Kodiak CEO shared.
Regarding how the current pandemic situation impacted the transaction, Steve commented that “The COVID-19 situation escalated quickly, but our ability to close the deal is a testament to the strong operating performance of both Kodiak and Mandere. This performance gave our board the confidence to continue its support of Kodiak’s aggressive growth strategy. It’s kind of a big deal to get this done in the midst of this recession.”
Prior to the sale, Mandere Construction and Northwest Building Components were assurance, corporate, and personal tax clients of Moss Adams. As the client’s shareholders began to evaluate their long-term goals of expanding their geographic footprint and client base, they turned to their trusted advisors at Moss Adams, Kelli Franco and Tricia Galvano, both partners in Spokane, for guidance through a potential transaction. Kelli and Tricia worked with James Rothenberger, partner, Moss Adams Capital, and Brandon Leyert, associate, Moss Adams Capital, to assess their objectives, taking their transaction preparedness and transition plans into consideration. The Moss Adams team collaboratively led the client through the transaction process, navigating the COVID-19 environment to a better than expected outcome for the shareholders across the board.
Moss Adams will continue to serve John Mandere and his holdings after the transaction.
This merger represents another successful transaction by Moss Adams Capital, serving the building materials and products, construction, and engineering, industries. Moss Adams is a provider of financial advisory services to the construction, building materials and products, and engineering industries, offering services that include investment banking, accounting, tax planning, integration consulting, estate planning, and other strategic and consulting services.
To learn more about this integrated approach to leading our clients through ownership transition preparedness and transactions, please reach out to our Moss Adams Capital contacts below.
For more information regarding this deal, please contact:
James Rothenberger, Partner, Moss Adams Capital | (206) 302-6777
Kelli Franco, Partner, Moss Adams | (509) 777-0116
Tricia Galvano, Partner, Moss Adams | (509) 777-0181
Brandon Leyert, Associate, Moss Adams Capital | (206) 302-6444
Paul Huiras, Analyst, Moss Adams Capital | (206) 302-6700