Stock Building Supply Announces Emergence from Chapter 11

RALEIGH, N.C., July 1 /PRNewswire/ -- Stock Building Supply Holdings, LLC ("Stock"), today announced that it has successfully completed its financial restructuring and has emerged from Chapter 11. The company's Plan of Reorganization was confirmed by the United States Bankruptcy Court for the District of Delaware on June 15, 2009.

"This is a great day for Stock. We are emerging with the strongest balance sheet and financial foundation of any of our competitors. We are re-focused on our core markets and well positioned for the upturn in the housing market," said Joe Appelmann, Stock Building Supply President. "We are pleased to have completed our recapitalization on an accelerated timeline while meeting the commitments we made to our customers, vendors and employees; none of whom were impaired as part of the bankruptcy process. It is thanks to the hard work of our associates and the loyalty of our customers and vendors that we remain one of the leading suppliers of building materials to professional home builders and contractors. We look forward to partnering with our customers and continuing to meet their needs in the coming months and years."

After closing operations in select underperforming markets while under Chapter 11 protection, the company is now focused on 19 core markets. These geographic markets represent the strongest prospects for growth and will enable the company to create a strong competitive position and include: Washington, DC; Paradise, PA; Richmond, VA; Raleigh-Durham, Charlotte and Winston-Salem/Greensboro, NC; Greenville and Columbia, SC; Atlanta, GA; Austin, Amarillo, Houston, Lubbock and San Antonio, TX; Albuquerque, NM; Salt Lake City and Southern UT; Spokane/Northern Idaho; and Los Angeles, CA. The company also continues to operate its commercial, flooring and roofing business units.

"We believe the decisions made over the past several weeks have put the company on a path for success," said Timothy Meyer, Chairman of Stock and Managing Director of The Gores Group ("Gores"), Stock's majority owner. "The proactive steps Stock has taken to address the issues facing our business and the entire homebuilding industry will eliminate uncertainty about our future, an uncertainty that many of our competitors continue to face. We appreciate the support of our loyal customers and their belief in the strength of the Stock management team and our dedicated and knowledgeable associates. Stock is committed to being highly competitive in the markets in which it operates. As a result of recent actions, we're confident the company is now well positioned to operate profitably in the current environment and capitalize on its full potential."

Per the terms of the original transaction, and following completion of the recapitalization, Gores has invested $75 million in the company and put in place a $150 million undrawn bank credit facility. The resulting balance sheet and financial stability puts Stock in a strong go-forward position.

Additional information regarding today's announcement is available at Stock's website www.stockbuildingsupply.com.

About Stock Building Supply

Raleigh, NC-based Stock Building Supply is a leading supplier of building materials to professional home builders and contractors in the United States. Stock operates out of 19 markets including Washington, DC; Paradise, PA; Richmond, VA; Raleigh-Durham, Charlotte and Winston-Salem/Greensboro, NC; Greenville and Columbia, SC; Atlanta, GA; Austin, Amarillo, Houston, Lubbock and San Antonio, TX; Albuquerque, NM; Salt Lake City and Southern UT; Spokane/Northern Idaho; and Los Angeles, CA. For more information visit: www.stockbuildingsupply.com.

About The Gores Group, LLC

Founded in 1987, The Gores Group, LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm's operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, LLC has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. The firm's current private equity fund has committed equity capital of $1.7 billion. Headquartered in Los Angeles, California, The Gores Group, LLC maintains offices in Boulder, Colorado and London. For more information, please visit www.gores.com

About Wolseley plc

Wolseley plc is the world's largest specialist trade distributor of plumbing and heating products to professional contractors and a leading supplier of building materials to the professional markets. Group revenue for the year ended 31 July 2008 was approximately pounds Sterling 16.5 billion and trading profit was 683 million pounds. At 31 January 2009, Wolseley had around 63,000 employees operating in 27 countries namely: UK, USA, France, Canada, Ireland, Italy, The Netherlands, Switzerland, Austria, Czech Republic, Hungary, Belgium, Luxembourg, Denmark, Sweden, Finland, Norway, Slovak Republic, Poland, Romania, San Marino, Panama, Puerto Rico, Trinidad & Tobago, Mexico, Barbados and Greenland. Wolseley plc is listed on the London Stock Exchange (LSE: WOS) and is in the FTSE 250 index of listed companies.

    Press Contacts

    For Stock Building Supply

    Ellen Moskowitz or Giovanna Konicke
    Brunswick Group
    (212) 333-3810

    For The Gores Group, LLC

    Frank Stefanik
    (310) 209-3010

    Terry Fahn
    Sitrick And Company
    (310) 788-2850

    For Wolseley plc

    Mark Fearon
    Wolseley plc
    +44 (0) 118 929 8787

    Kate Miller
    Brunswick (London)
    +44 (0) 207 404 5959