US LBM, a distributor of specialty building materials in the U.S. has agreed for Platinum Equity to acquire a stake in the company from Bain Capital Private Equity.
Bain and Platinum will have equal ownership and joint Board governance.
US LBM will continue under the leadership of President and CEO L.T. Gibson and the current management team. Financial terms were not disclosed.
US LBM has more than 450 locations throughout the country. The company offers specialty products, including windows, doors, millwork, wallboard, roofing, siding, engineered components and cabinetry.
Over the past three years, US LBM has tripled sales and profit as a result of an accretive M&A strategy, and investments in data and analytics, supply chain optimization and customer experience. The company has leveraged its national scale and operations while diversifying its product mix, expanding its structural components manufacturing capabilities and building local customer relationships.
“We are excited to continue our successful collaboration with L.T. and the talented US LBM team. As the fundamental outlook for new home construction in the U.S. remains strong, we believe the company is poised to further build out its integrated platform through organic growth initiatives and strategic acquisitions,” said Stephen Thomas, partner at Bain Capital Private Equity.
“There are meaningful opportunities to continue building scale nationally and at the local level,” said Platinum Equity Managing Director Nathan Eldridge. “Our plan is to continue investing in core markets with new product offerings or capabilities, while further expanding the company’s reach geographically. We have a lot of experience investing in building products businesses and believe we are well positioned to support US LBM’s growth.”
Platinum Equity recently signed an agreement to acquire Cook & Boardman, a specialty distributor of commercial door and security integration solutions. Other building products companies in the firm’s current portfolio include JELD-WEN’s Australasia business; Cabinetworks, a U.S. manufacturer and distributor of kitchen and bath cabinets; and PGS, a provider of hard surface floor coverings.
The US LBM transaction is expected to close by the end of the first quarter 2024.