NEW YORK - The parent company of Armstrong Cabinet/ACProducts and Northwest Hardwoods has added another firm to its building products portfolio. American Industrial Partners has acquired the operating assets of Potomac Supply Corp., a softwood mill and wood treatment service supplier in Kinsale, VA.
Renamed Potomac Supply LLC, AIP purchased the lumber mill for $10 million, according to the Westmoreland News. Potomac Supply, which had filed for Chapter 11 bankruptcy protection in January, had a previous purchase offering of $20.3 million by Chesapeake Bay Enterprises fall through, the news source reported.
Founded in 1948, Potomac operates a 679,000 square foot yellow pine sawmill with 75 million board feet of capacity on a two shift operating basis and sells dimensional lumber in kiln dried and treated form. Potomac also produces wood fuel pellets, shavings, fencing components and pallets.
"Although the company's operations have been challenged in recent years, its facilities are modern and competitive," AIP's Rick Hoffman said in a statement. "Potomac is an ideal platform for our thesis in softwoods and wood treating and we look forward to working with management to drive growth and margin improvement."
"I am extremely pleased to be partnering with the AIP. We share the commitment to build on Potomac's strong history in the building products industry and deliver expanded capabilities and value to our customers," Potomac CEO Darrell Keeling said in a statement.
AIP said in a news release the transaction is its "fifth platform investment in 2012 and the sixth investment in the building products industry over the last 18 months." Among its wood products acquisitions are Armstrong Cabinet/ACProducts, acquired by AIP Oct. 31, 2012, and Northwest Hardwoods, which AIP acquired from Weyerhaeuser in August 2011.
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