RedBuilt
Corporate carveout, Turnaround
Sectors: Building Materials, Engineered Solutions, Wood Products, Manufacturing
Company
Founded in 1960 as Trus Joist International, Inc., the company has been the innovator in the use of engineered wood products.
Serves the light commercial and high-density housing markets with custom-designed roof trusses, floor joists, and wall panels.
Opportunity
RedBuilt was operating as Trus Joist Commercial, a division of the Weyerhaeuser Company.
Weyerhaeuser sought to divest of the division, but experienced challenges with the sale process and was on the verge of electing to shut it down.
Through continued dialogue and negotiation, we were able to convince Weyerhaeuser’s senior management that an asset transfer was a superior alternative to liquidating the business.
Investment Thesis
The division had an excellent reputation in the markets it served.
The management team and the division’s associates were highly capable and committed to the business.
We believed that RedBuilt could operate at positive cash flow and thrive as a private, standalone company.
Execution
RedBuilt did not acquire the “Trus Joist” brand, which was retained by Weyerhaeuser. A re-branding and re-introduction to the market was critical.
RedBuilt needed to transition from a small division of a large corporation to a standalone business. Responsibility for IT, payroll, treasury, insurance, and human resources all needed to be put in place post-transaction.
Cost-saving measures, conservative capitalization, and investment in key resources permitted the company to absorb initial losses and build a sustainable enterprise.
Outcome
RedBuilt has become a sustainable and valuable organization, having achieved world-class safety performance and record profitability.