PORTLAND, Ore., September 24, 2021--(BUSINESS WIRE)--Please replace the release with the following corrected version due to revisions.
The updated release reads:
JOHNSTONE SUPPLY APPROVES DEFINITIVE CONVERSION AGREEMENT WITH REDWOOD CAPITAL INVESTMENTS
Johnstone Supply, Inc. announced today that its members have approved a definitive conversion agreement with Redwood Capital Investments LLC that will provide the capital required for Johnstone to convert its business structure from an Oregon Cooperative into a Delaware limited liability company operating under the name Johnstone Supply, LLC. Pursuant to the terms of the agreement, Johnstone Supply LLC will continue to operate as a wholesale distributor based in Portland, exclusively providing products and services to the former members of the Johnstone Cooperative. The 90+ individual Johnstone Business Owners are expected to execute exclusive territory distribution agreements with Johnstone Supply, LLC and will remain significant equity holders in the new entity.
"We are very excited to welcome Redwood into the Johnstone family," commented Johnstone Chairman of the Board Jeffrey Sheehan. Sheehan continued, "The completion of this transaction will provide Johnstone and the Johnstone Business Owners an unprecedented capital foundation to continue to grow and capture market share, while allowing for accelerated investments in the expansion of our supply chain infrastructure and industry technology tools."
The definitive conversion agreement is subject to typical terms and conditions, including regulatory approvals. The transaction is expected to close in the fourth quarter of 2021. Wells Fargo Securities served as exclusive financial advisor to Johnstone. K&L Gates LLP acted as the legal advisor to Johnstone. Kirkland & Ellis LLP acted as the legal counsel to Redwood.
About Johnstone Supply:
Headquartered in Portland, Oregon, Johnstone Supply Cooperative is a leading North American HVACR brand with over $3B in annual sales generated by its 90+ Members operating ~450 independently owned store locations across the U.S. and Canada. The Johnstone Business Owners are supported by six Regional Distribution Centers, offering access for its customers to over 75,000 Johnstone products and millions of special-order parts through its relationships with hundreds of the industry's top manufacturers. Johnstone is recognized for its value-added services powered by thousands of onsite technical experts, industry leading training programs and technology tools that streamline equipment selection, troubleshooting and ordering. Johnstone and its 90+ members are dedicated to their communities through service and the generous commitment of financial and other resources. Johnstone is proud to be an official partner and active contributor to Operation Homefront, a national non-profit providing emergency financial and other assistance to the families of military members and wounded warriors. (www.JohnstoneSupply.com).
About Redwood Capital Investments:
Redwood is a permanent holding company headquartered in Baltimore, MD that invests in and builds businesses across a diverse set of industries. Redwood’s existing businesses operate in the distribution, dealership, equipment leasing and real estate industries.
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Johanna Glode, PhD | Vice President – Organization Development