Bain Capital Private Equity acquired a majority stake in US LBM, the sixth-largest company on the 2020 ProSales 100 list. Specialty building materials distributor US LBM will continue to operate under the leadership of president and CEO L.T. Gibson and the current management team after the acquisition. Financial terms of the private transaction were not publicly disclosed.
Bain Capital Private Equity has a history of investments in industrial businesses and is one of the most active investors in the sector both nationally and globally, according to a news release. The company’s other involvement in the industrial distribution and building materials sectors includes investments in HD Supply Holdings, Imperial Dade, Dealer Tire, Consolis SAS, Ibstock PLC, and MKM Building Supplies. The transaction is expected to close in December 2020 and is subject to customary closing conditions.
“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,” Stephen Thomas, a managing director at Bain Capital Private Equity, said in a news release. “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.”
Kelso & Co. had been US LBM’s investment partner since August 2015. US LBM, founded in 2009 with 16 locations in three states, has grown to a distributor with more than 250 locations in 37 operating divisions across the United States. Since the distributor’s founding, it has grown through acquisitions and has opened more than 30 greenfield locations, including six in 2020. Most recently, the company acquired Zeeland Lumber, the 48th largest company on the ProSales 100 list.
“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,” Gibson said. “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.”
