Itochu looks to sell PrimeSource Building Products for more than $1 bn

Japanese trading house Itochu Corp has put PrimeSource Building Products Inc on the block and is seeking more than $1 billion for the US-based building material supplier, Reuters yesterday reported, citing people familiar with the matter.

Itochu, which acquired PrimeSource in 1998, has hired JPMorgan Chase & Co to run an auction for PrimeSource and the proposed sale has attracted interest from private equity firms, the report said.

Irving, Texas-based PrimeSource is one of the largest purveyor of fasteners in the world and one of the largest distributors of building materials in North America.

Its core products include nails, screws, collated fasteners, tools, compressors, accessories, roofing, gypsum, insulation, concrete accessories, building accessories and wire fence products.

PrimeSource sells major brands and makes its own line of fasteners under the Grip-Rite and Pro-Twist brands.

It has 42 distribution centres and 1,200 employees across the US, Canada, and the Caribbean and its closest competitors are Georgia-Pacific, Stanley Black & Decker, and Fastenal Company.