Specialty building materials distributor US LBM has acquired American Construction Source (ACS) in another mega deal in the LBM sector. Following the completion of the transaction, US LBM will operate nearly 400 locations across the U.S. The transaction is expected to close during the third quarter of 2021.
“With the addition of the ACS portfolio, US LBM will strengthen our position in the midwest and California, and expand our reach to Colorado and Washington, two quickly growing construction markets,” US LBM president and CEO L.T. Gibson said in a prepared statement. “We look forward to working with the ACS team and their local operators to continue leveraging their strong relationships, experience, and teams to grow in their respective markets.”
American Construction Source’s portfolio consists of multiple locally-branded distributors and manufacturers, operating more than 70 locations in Arizona, Arkansas, California, Colorado, Minnesota, Missouri, Nevada, Washington, and Wisconsin. The company is backed by private equity companies Angeles Equity Partners and Clearlake Capital Group.
“ACS joining US LBM is a perfect outcome based on the alignment of our share strategy to preserve longstanding local lumberyard brands and operations while delivering a great customer experience,” ACS CEO James Drexinger said. “We are grateful to our customers, suppliers, leadership team, salespeople, and associates for their support. Together we have built a significant industry platform while simultaneously honoring the 100-plus year heritage of the local brands and family legacies we have acquired.”
ACS, backed by private equity firms Angeles Equity Partners and Clearlake Capital Group, was formed after purchasing Meek’s Lumber and quickly expanded with the acquisitions of Edwards Building Center, Breceknridge Building Center, and Arrow Building Center in late 2018. The distributor acquired Freeborn Lumber Company in June 2019, Contractor’s Truss Systems in September 2019, Homewood Holdings in February of 2020, and Weaver Lumber in July 2020. In March, the company expanded and upgraded several Homewood operations in the Sacramento, Calif., metro market.
Buffalo Grove, Ill.-based USL LBM has completed more than 65 acquisitions since it was founded in 2009, including four since being acquired by Bain Capital Private Equity in November.
The distributor added six locations with its November 2020 acquisition of Zeeland Lumber, 10 locations with its acquisitions of Ridgefield Supply Company, Tri-County Building Supplies, and Jennings Builders Supply & Hardware in December 2020, five locations with its acquisition of Gilcrest/Jewett in January 2021, and 40 locations with the acquisition of Higginbotham Brothers in May. The distributor has also added greenfield locations in New Castle, Del., Paterson, N.J., and Yeadon, Pa., since November 2020. US LBM also signed a definitive agreement to be acquired by US LBM offers a portfolio of specialty products, including windows, doors, millwork, wallboard, roofing, siding, engineered components, and cabinetry.
