AAA Distributor Completes Three Add-on Acquisitions Including Kitchen and Bath Solutions, The Ugly Duck, and Surplus Building Materials

Jun 29, 2022

On May 20, 2022, AAA Distributor, Inc. (“AAA Distributor” or “AAA”), completed its third successful acquisition of the year and fourth in the last twelve months. AAA acquired Kitchen and Bath Solutions, Inc. (“Kitchen & Bath Solutions” or “KBS”) on April 29, 2022, The Ugly Duck, Inc. (“Ugly Duck”) on May 6, 2022, and Surplus Building Materials, LLC (“Surplus Building Materials” or “Surplus”) on May 20, 2022. All three acquisitions were asset purchases.

Located in Atlanta, GA, Kitchen & Bath Solutions is a cabinet distributor serving customers such as dealers, builders, remodeling contractors, and designers. Their products serve both residential and commercial applications in kitchen, bath, laundry, office, basement, and recreational room usage. KBS sells to commercial and retail customers through its showroom as well as in-home delivery and assembly options.

Located in Spokane, WA, The Ugly Duck is a direct seller of high-quality doors, cabinets, and other residential products including windows, vanities, flooring, and assorted hardware. Ugly Duck operates and sells out of two warehouses.

Dallas, TX, based Surplus Building Materials is a dealer of home remodeling products such as flooring, cabinets, doors, kitchen, bath fixtures, wall tile, lighting, hardware, and tools. Surplus serves retail and commercial customers in the DFW area. Surplus operates out of showroom in addition to hosting an online sales platform.

Collectively, the acquisitions compliment AAA’s organic growth initiatives by providing expansion to new geographies and product categories, establishing a national network to sell existing AAA offerings through, and furthering the Company’s digital sales capabilities. The acquisitions of KBS, Ugly Duck, Surplus, along with the December 2021 acquisition of USA Distributor, positions AAA as one of the nation’s largest providers of residential improvement and remodeling products.

AAA Distributor CEO, John Kennard stated that, “AAA welcomes the Kitchen & Bath Solutions, Ugly Duck, and Surplus Building Materials teams to its family of companies. Over decades, these businesses have incredible legacies of partnering with contractor professionals, remodelers, and homeowners, offering superior value and service in Georgia, Washington State, and Texas. Combining with AAA’s Pennsylvania operations, this new family of companies now has nearly 500,000 square feet of in-stock product available in outstanding major market locations that are open-to-the-public. All these locations offer kitchen and bath design services and same-day pickup of high-quality building products including kitchen cabinets, bath fixtures, luxury flooring and interior/exterior doors. AAA Distributor is now among the largest distributors of high quality, solid core interior and exterior doors, stocking a broad assortment ranging from classic and ornate styles. Our doors, as well as cabinets and other building products, are stocked in AAA Distributor’s family of companies’ warehouses and offered in their showrooms. Also, these awesome products are available online, thus delivering an omnichannel approach across brick and mortar, dealers, websites, and marketplaces. This family of companies have combined as one team to offer kitchen, bath and door products nationally, and all the while, ensuring a vigilant focus on serving professional contractors as well as consumer customers at the local level as they have for decades.”

Valesco continues to seek investment opportunities to provide equity and subordinated debt for control buyout, recapitalization, minority, management buyout, and mezzanine situations from Valesco Fund II. The AAA Distributor add-ons are great examples of the relationship, partnership, and trust essential to create the best outcome for all parties. Kennard adds, “AAA Distributor is actively pursuing more acquisitions and looks forward to partnering with business owners who distribute and retail great quality kitchen and bath products, doors, and other building materials across categories. AAA Distributor values people and relationships above all else and will continue to grow and nurture the businesses they built and have great pride in.”

About AAA Distributor

AAA Distributor, headquartered in Philadelphia, PA is a distributor, wholesaler, and retailer of kitchen, bathroom and flooring home improvement and remodeling products. AAA designs and imports its own proprietary product line, LessCare, which includes cabinetry, vanities, bath furnishings, plumbing supplies, flooring and fixtures.

About Valesco

Valesco is a Dallas, Texas based firm that focuses on making control and non-control investments in select growth-oriented small- and lower- middle-market businesses engaged in manufacturing, distribution, and business-to-business services. Valesco specializes in partnering with a company’s management team to support its growth objectives. As long-term industry veterans, the principals have capitalized and built numerous successful businesses, serving those companies in varying roles as investors, managers, advisors, and directors.

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