Information on the target
Baltimore, MD, May 6, 2026 – Parkway Capital (“Parkway”) is pleased to announce an investment in Builder’s Supply & Builder’s Plumbing, Electric, & Hardware (“Builder’s Supply” or the “Company”). Parkway provided subordinated debt and equity to support the recapitalization of Builder’s Supply in partnership with Building Industry Partners (“BIP”). Founded in 1920 and headquartered in Tullahoma, TN, Builder’s Supply operates three locations as a building materials and hardware distributor, catering to customers within a ~50-mile radius between Nashville and Chattanooga.
Builder’s Supply serves a diverse clientele, including local custom builders, professional remodelers, and contractors, providing them with essential materials and tools necessary for their projects. The Company’s long-standing presence in the market and commitment to quality service have established it as a trusted partner in the region.
Industry overview in the target’s specific country
The building materials and hardware distribution industry in the United States has shown resilience and growth, driven by a robust housing market and increasing demand for renovation and remodeling projects. As of 2026, the industry is experiencing a surge in activity, fueled by low mortgage rates and a growing population that necessitates new housing developments. This environment presents significant opportunities for distributors like Builder’s Supply to expand their market share and enhance service offerings.
In Tennessee, the construction sector is particularly vibrant, with Nashville and Chattanooga emerging as key urban centers for development. The state has witnessed a steady influx of residents, leading to increased demand for housing and commercial properties. This trend has created a favorable landscape for building material suppliers, as contractors and builders seek reliable partners to meet their project needs efficiently.
Moreover, the ongoing trend towards sustainability and eco-friendly building practices is reshaping the industry. Distributors are increasingly required to offer products that meet environmental standards and cater to the growing consumer preference for sustainable materials. Builder’s Supply is well-positioned to adapt to these trends, leveraging its extensive product range and supplier relationships to meet evolving market demands.
The rationale behind the deal The investment in Builder’s Supply aligns with Parkway Capital’s strategy of supporting established companies with strong market positions and growth potential. By providing subordinated debt and equity, Parkway aims to…