Investment Group Acquires Construction Resources
ATLANTA — Construction Resources LLC (CR) is now under the ownership of New York-based investment group Mill Point Capital.
International Designs Group LLC (IDG), a portfolio company of Mill Point, announced the acquisition on July 18 of the half-century-old Atlanta firm, which includes Atlanta Kitchen and Natural Stoneworks. Terms of the transaction weren’t announced.
The acquisition will allow Construction Resources to expand into new markets with its current operations and by acquisition and continue to focus on growth initiatives providing enhanced opportunities to CR employees across the United States through its legacy brands and locations.
CR’s entire senior leadership team will continue with the company.
“Our company has always believed in developing our team and fostering relationships while we provide the best possible solutions and products to our residential, multi-family, fabricator and commercial customers,” said Mitch Hires, Construction Resources CEO.
“As part of International Designs Group and Mill Point Capital, we plan to continue our mission of being a loyal partner to our customers and vendors, creating job opportunities, and working with our 750 employees across 30 plus locations.”
“Mitch and his team have built a special platform in Construction Resources,” said Bruce Zwicker, Mill Point executive partner and executive vice chairman of International Designs. “The growth opportunities in front of the company are exceptional, and we are thrilled to be bringing CR into the IDG family.”
“We’ve been extremely impressed by the entire CR team, and the excellent foundation they have built, said Michael Duran, founder and managing partner of Mill Point. “We’re excited to partner with Mitch and the rest of the CR team to continue growing the International Designs platform and pursuing the numerous opportunities ahead.”
The acquisition is the second investment-firm deal involving Construction Resources. In late 2015, New-York-based Monomoy Capital Partners acquired the company, allowing for expansion and strengthening of the company’s footprint and product offering.
In 2019, CR acquired United Materials Inc. (UMI), helping expand its product and geographic reach. The company also purchased Jacksonville, Fla.-based stone wholesaler Any Old Stone later that year to expand its UMI distribution network.
“The evolution of Construction Resources under our partnership has been remarkable,” said Lee Mlotek, Monomoy managing director. “We are exceptionally proud of the management team and their accomplishments. The team was resilient and persistent throughout our ownership.”
The Construction Resources family of businesses was born in 1970 when Fred E. Hires Sr. and his partners opened Atlanta Marble Manufacturing in Decatur, Ga. For the next 26 years, with cultured marble as its only product offering, Atlanta Marble experienced modest growth.
Fred’s sons, Mitch and Sonny Hires, grew up working in the business and, in 1996, purchase the interests of their father’s partners. They expanded into kitchen countertops, opening Atlanta Kitchen; the company’s success led to other complementary design and construction products and expansion into other states in the Southeast.
The Monomoy investment deal in 2015 enabled the merging of CR and Builders Specialties Inc.
Mill Point’s IDG already made one major move in the hard-surfaces market earlier this year when it partnered with Farmingville, N.Y.-based Cancos Tile Corp. in April. Cancos operations include 12 designer showrooms in New York and New Jersey, more than 500,000 ft² warehouse capacity, a hard-surfaces fabrication plant on site, and a tile-distribution network serving the southeastern United States.
