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Court Confirms Stock Building Supply's Plan of Reorganization

Posted on: Monday, 15 June 2009, 18:04 CDT

Company Expects to Emerge From Chapter 11 in the Coming Weeks

RALEIGH, N.C., June 15 /PRNewswire/ -- Stock Building Supply Holdings, LLC ("Stock"), today announced that the United States Bankruptcy Court for the District of Delaware (the "Court") has entered its order confirming Stock's Chapter 11 Plan of Reorganization (the "Plan"). The confirmation order paves the way for the company to emerge from Chapter 11 within the coming weeks.

"The Court's confirmation of our Plan is a major milestone in the recapitalization of our business," said Joe Appelmann, Stock Building Supply President & CEO. "We have taken a very hard look at our business, taking proactive steps to reshape the company and realign it with the current market reality. The reorganization process will allow us to emerge as a stronger company, better positioned to continue to deliver exceptional service to our customers. I want to thank all of our hardworking associates around the country who, throughout this difficult chapter in our history, have maintained their focus and dedication to providing the U.S. market with the highest quality service and products."

Immediately preceding the filing of its Chapter 11 recapitalization plan, Stock announced a new ownership structure under which The Gores Group owns 51% of the company and Wolseley plc, the company's former parent company, maintains a 49% stake. As part of the transaction, Gores has committed to invest $75 million in the company and to provide a $125 million revolving credit bridge facility. Gores' investment was conditioned upon completion of a voluntary, pre-packaged Chapter 11 process. In conjunction with the pre-packaged recapitalization, Stock arranged for up to $100 million in debtor-in-possession ("DIP") financing from Wolseley, but to date, this line of credit has not been drawn upon.

In addition to facilitating the Gores Group investment, the Chapter 11 recapitalization has enabled Stock to take the actions necessary to focus on markets with the best prospects for growth and ensure the company is well positioned for the housing market upturn.

Additional information regarding today's announcement will be 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. 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 pounds Sterling 683 million. 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

SOURCE Stock Building Supply Holdings, LLC

Source: PR Newswire

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