Report: Bain Capital Considering $7B Sale in US LBM Stake - Modern Distribution Management

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Report: Bain Capital Considering $7B Sale in US LBM Stake

The management consulting company is looking to run an auction process for a 49% stake, according to Bloomberg.

Management consulting company Bain Capital could sell a minority stake in Buffalo Grove, Illinois-based building materials distributor US LBM, which would value the company at approximately $7 billion, according to a report from business news outlet Bloomberg.

The $7 billion valuation includes debt, according to the report.

According to sources who spoke to Bloomberg on the condition of anonymity, Bain is currently considering running an auction process for a 49% stake.

The sources said the stake is likely to interest other private firms, Bloomberg reported. The terms of the sale could still change, or Bain might opt to keep the stake. No final decisions has been announced, according to the report.

According to data reviewed by Bloomberg, Bain acquired US LBM three years ago using a $1.35 billion term loan and $500 million bond. After the acquisition, the company paid itself a $400 million dividend using a payment-in-kind bond, which allowed it to repay the interest with more debt, according to the report.

On MDM’s 2023 Top Distributors Lists, US LBM ranks No. 3 among building materials/construction.

On Oct. 4, US LBM announced it had acquired Jacksonville-based Manning Building Supplies, a provider of building products and manufactured components to professional builders in Eastern and Central Florida.

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