US LBM to be Acquired by Bain Capital Private Equity
November 13, 2020
US LBM signed a definitive agreement for Bain Capital Private Equity to acquire 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 private transaction were not disclosed.
Founded in 2009 with 16 locations in three states, US LBM operates more than 250 locations. Since US LBM's founding, it 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," says 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."
"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," says 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."
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 advisor, 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.