Monomoy advances sale process for concrete products maker Cast-Crete

Monomoy Capital Partners is in a late-stage process to sell Cast-Crete, a Florida-based maker of pre-cast concrete products, PE Hub reported, citing four people briefed on the matter. The company generates about $60 million in EBITDA, and building-products valuation data cited by PE Hub implies a potential enterprise value of about $850 million.

Jefferies began reviewing sale options for Cast-Crete in late spring, according to PE Hub. Monomoy declined to comment to the publication, while Jefferies did not respond to a request for comment.

Cast-Crete, based in Seffner, Florida, manufactures structural lintels and window sills used by residential building contractors. PE Hub described the company as the largest US producer of those products. It also makes parking bumpers and scuppers.

Lintels and sills are small-ticket items in the economics of a homebuild, with Cast-Crete’s products representing less than 1 percent of the cost of constructing a new single-family house, according to PE Hub. Their role is structural: they provide load-bearing support around doorways and windows.

In Florida and other hurricane-exposed regions, building codes require stronger materials in certain applications. PE Hub reported that Cast-Crete’s concrete products are used in place of wooden support beams in both older buildings and new construction to meet those requirements.

Valuation context

Two people cited by PE Hub said Cast-Crete could attract interest from private equity firms focused on manufacturing as well as a broad group of strategic acquirers. Strategic buyers may include industry participants that can combine a target with existing operations, while private equity buyers typically assess cash flow, operating improvements and exit opportunities.

SIPA privateMetrics data cited by PE Hub showed that building products companies have traded at a median valuation of 14 times enterprise value to EBITDA in recent years. EV/EBITDA is a common deal metric that applies a valuation multiple to a company’s earnings before interest, taxes, depreciation and amortisation to estimate enterprise value. Applied to Cast-Crete’s reported EBITDA, that median multiple would indicate a valuation around $850 million, according to PE Hub.

One person briefed on the matter told PE Hub that Cast-Crete has a leading position in the Southeast market for concrete sills and lintels. That person also said the company’s margins and exposure to the Southeast residential construction market could make it appealing in a sale to a strategic acquirer.

Private equity ownership

Monomoy acquired Cast-Crete in 2021. PE Hub reported that, including Monomoy’s ownership, the company has been controlled by three private equity firms since 2014. Stonebridge Partners and Washington Partners were the other owners identified by the publication.

Monomoy’s interest in construction and building products has been visible in prior public comments. PE Hub noted that Jaime Forsyth, a Monomoy partner and head of investments, sits on Cast-Crete’s board and discussed the firm’s view of housing and building products in a 2022 interview with the publication.

This story draws on original reporting from PE Hub.