A Connecticut building supply company closed its local operation last week after Sovereign Bank failed to arrange a takeover of the business.
C&S Building Materials closed its Avis Drive distribution and warehouse center, where an estimated 20 people worked, about a month after Sovereign Bank began soliciting industry competitors who might be interested in taking over the South Windsor, Conn.-based supplier, according to a person familiar with the negotiations.
National building supplier Allied Building Products Corp. had eyed C&S’ assets, which includes the Latham facility and two in Connecticut. By mid-October, C&S had indicated to employees in a memo that a potential deal between the businesses was under way, according to a sales representative at the Latham facility.
However, East Rutherford, N.J.-based Allied Building Products opted to pursue an acquisition, partly because it already has a warehouse operation on Railroad Avenue in Albany.
“C&S had difficulty with their lender. … We opted not buy the company,” said Kevin Hawley, vice president of corporate development for Allied Building Products.
Allied Building Products, which was founded in 1950 and has 200 locations nationwide, ended up employing one C&S worker from Latham at its Albany facility. The national supplier is now trying to move into C&S’ warehouses in South Windsor, Conn., and Bridgeport, Conn.
C&S officials could not be reached Monday, and no one answered the phone at its Latham facility.