BlackEagle Partners, the private equity firm that created and owns US LBM, today acquired Lyman Lumber Co. The acquisition includes Lyman's location in Chanhassen, Minn., and its various subsidiaries, including Automated Building Components, Carpentry Contractors Corp., and Lyman Lumber of Wisconsin. The company will become part of US LBM.
The Excelsior, Minn.-based Lyman Lumber's, parent company, Lyman Holding Co., filed for bankruptcy on Aug. 4. Lyman Holdings originally planned to sell its Midwest operations to SP Asset Management LLC., an affiliate of New York City-based global diversified holding company Steel Partners Holdings L.P.
BlackEagle was identified as the winning bidder for Lyman Lumber on Oct. 13, however, just over a week after Lyman Holdings auctioned off its assets. Court records reveal that a purchase price of $22.5 million, minus certain liabilities and adjustments, was set.
As with all the companies in the US LBM portfolio, Lyman Lumber, ranked No. 21 on the latest ProSales 100 listing, will continue to operate under its current name with the same locations and workforce. Lyman's vice president of operations, Dale Carlson, will remain with the company as president.
The dealer serves the Minneapolis-St. Paul market as well as the Eau Claire market in Wisconsin. US LBM, ranked No. 14 on the ProSales 100, is a holding company that currently owns eight building material dealers serving the Midwest, Northeast, and Mid-Atlantic regions.
"With over 114 years of commitment to the building products industry, Lyman has established a terrific reputation," said LT Gibson, CEO of US LBM. "All of our business unites will benefit through the acquisition and we are excited to welcome Lyman's employees to our team."
Court records also show that, at the time of its bankruptcy filing, Lyman Holdings had accumulated debt of $50 million. The company posted a deficit of $45.2 million at the end of 2010. Lyman Lumber, meanwhile, posted a net loss of $51.7 million at the time of the filing. Of the subsidiaries, both Lyman Lumber of Wisconsin and Building Materials Wholesalers managed to retain earnings and did not accumulate a loss. The companies did not disclose the details of the transaction.
As for its ProSales 100 ranking, the dealer reported professional sales of $146.2 million for 2010 with nine locations and 633 employees.
"The acquisition of Lyman furthers our commitment to US LBM as a platform in the building supply industry and represents a perfect example of BlackEagle's strategy of increasing value through acquisition," said BlackEagle vice president Bryan Tolles.
BlackEagle Partners focuses on investing in underperforming and distressed businesses, in a wide range of industries, that need help operationally. The company also works with non-core subsidiaries of larger businesses, as well as companies in weaker markets.