US LBM to Be Acquired by Bain Capital Private Equity

Bain Capital Private Equity establishes a solid building materials presence with the addition of US LBM, the sixth-largest construction distributor according to MDM's most recent Market Leaders rankings.
Bain acquires US LBM

Building materials distributor US LBM, Buffalo Grove, Illinois, on Friday announced it has agreed to be acquired by Bain Capital Private Equity, which will own a majority stake in the company. US LBM will continue to operate under the leadership of President and CEO L.T. Gibson and the current management team. Financial terms of the deal were not disclosed.

Founded in 2009 with 16 locations in three states, US LBM has grown to be one of the top distributors of specialty building materials operating more than 250 locations. US LBM ranks sixth on the list of MDM’s 2020 Building & Construction Top Distributors.

The company’s unique and powerful operating model combines the advantages of its national scale and central team of industry experts with high service levels, local expertise, entrepreneurial culture and excellent customer relationships.

US LBM, which operates 37 divisions, has grown through acquisitions and has opened more than 30 greenfield locations, including six this year.

“We have grown tremendously over the past 11 years, and with Kelso’s support we were able to accelerate our acquisition strategy that has positioned us for continued growth,” said Gibson. “US LBM’s national platform, local go-to-market strategy, relationships with top suppliers, and record of successful integrations continues to make us an acquirer of choice in the building materials industry. We look forward to working with Bain Capital Private Equity and leveraging their experience of helping industrial companies scale and attract additional partners.”

“L.T. and his team have built an impressive, enduring business with a winning model that combines the advantages of national scale with a strong local market strategy,” said Stephen Thomas, a managing director at Bain Capital Private Equity. “We believe US LBM is poised for continued growth and expansion as a leading national building materials distributor. We are excited by the opportunity to work with this talented team and to further grow their integrated platform while maintaining the company’s unique culture, people-first mindset and commitment to superior customer service.”

Bain Capital Private Equity’s experience in the industrial distribution and building materials sectors includes investments in HD Supply Holdings Inc., Imperial Dade, Dealer Tire LLC, Consolis SAS, Ibstock PLC and MKM Building Supplies.

Kelso & Co. has been the company’s investment partner since August 2015.

The transaction is expected to close in December 2020 and is subject to customary closing conditions, including requisite regulatory approvals. Debt financing for the transaction is being led by Barclays and will comprise of a new asset based revolving credit facility and a combination of other new debt financing.

Barclays is serving as financial adviser, Debevoise & Plimpton as legal counsel and Ernst & Young as accounting advisor to Kelso and US LBM. Kirkland and Ellis LLP is serving as legal counsel, and PwC as accounting advisor to Bain Capital Private Equity.

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