Posted on: Saturday, November 6, 2004
Honsador Lumber sold in $50M deal
By Andrew Gomes
Advertiser Staff Writer
An investment group that includes billionaire Amway co-founder Richard DeVos has purchased Hawai'i's largest building materials supply company, Honsador Lumber Corp., in a deal estimated at more than $50 million.
The acquiring group was led by Cleveland-based investment firm Key Principal Partners, and involves Ko Olina Resort & Marina master developer Jeff Stone.
The buyers said they expect to retain all 213 Honsador employees, including those at two affiliated firms, Honolulu Wood Treating and Ariel Truss, that were included in the sale completed yesterday.
Jim Pappas, who until yesterday was Honsador's owner and chairman, said in a statement that he wasn't actively looking to sell the company, but was impressed by the team's offer.
"They genuinely value our company legacy and our business philosophies," Pappas said.
The purchase positions the new owners with the leading local construction materials wholesaler at a time of record activity in commercial, housing, and government construction projects.
Honsador, with annual sales estimated around $100 million, sells a plethora of building materials from steel framing to fireplaces, appliances, drywall and insulation. The company bonds construction projects and sells packages that include all the materials to construct a home.
Established in 1935 as a cabinet, millwork, sash and window company called Honolulu Sash & Door, Honsador grew and in recent years expanded with Neighbor Island building firm acquisitions.
Greg Davis, a principal of Key Principal Partners, said Pappas will help new owners plan future growth as a paid adviser and member of Honsador's board.
Stone said the venture would help facilitate expected development at Ko Olina where plans are under way to build an aquarium, hotel and time-share properties and hundreds of homes over the next several years.
DeVos of Amway fame participated in the purchase of the mostly undeveloped Ko Olina Resort in 1998 with others including Stone through the DeVos firm RDV Corp.
DeVos this year was ranked by Forbes magazine in the middle of the world's 400 richest people, with a $2.4 billion net worth.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
