Stock Building Supply, the beleaguered construction-materials giant, is filing for bankruptcy and being taken over by a Los Angeles private equity firm in a deal that saves Raleigh-based Stock from shutting down entirely.
An affiliate of The Gores Group acquired a 51 percent interest in Stock, which was being sold by British parent Wolseley PLC. Gores agreed to invest $75 million in the company and provide up to $125 million in loans.
The deal is contingent upon completion of a pre-packaged Chapter 11 bankruptcy process that is expected to last up to 60 days, the companies said Wednesday.
Wolseley said in March that if it couldn't sell Stock by August, it would close the company.
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