Construction materials wholesaler Consolidated Lumber Company has closed on a $15 million loan from U.S. Bank to support its growth and provide working capital.
Founded in 1903, Stillwater, Minn.-based Consolidated Lumber operates 16 locations throughout Minnesota and Wisconsin under the name Arrow Building Center, providing construction materials, lumber, hardware and home improvement products primarily to building contractors.
The firm is expanding, having recently acquired Siren, Wis. lumberyard Johnson Lumber Company. Consolidated Lumber plans to combine its existing lumberyard in neighboring Webster, Wis. into the larger Siren location.
“U.S. Bank has been doing business with Consolidated Lumber for more than 60 years, during which time they’ve grown steadily thanks to a diverse and loyal customer base, as well as a thoughtful M&A strategy. We’re proud to again partner to help them expand, in this case taking advantage of the improving economy and housing market,” said Sam Philbrick, president of U.S. Bank Asset-Based Finance.
In September of last year, Consolidated Lumber was acquired by North Carolina-based investment firm Aiglon Capital Management. In announcing the acquisition, Aiglon praised Consolidated Lumber’s expert staff, customer service and technology, also noting the firm was committed to helping facilitate expansion initiatives.
“We look forward to not only continuing our long-term relationship with U.S. Bank, but also working with the team at Consolidated to continue growing the company and exceeding the expectations of its customers. Our partnership with U.S. Bank and new credit line will enable us to successfully achieve these objectives,” said Richard Griffin, managing partner at Aiglon Capital.
U.S. Bank’s financing is in the form of an asset-based credit line. U.S. Bank Asset Based Finance is one of the nation’s leading asset-based lenders providing financing for middle-market and large cap companies in a wide range of industries, such as lumber and building supplies, in the United States and Canada. The financing supports working capital, growth, acquisitions and turnarounds.
Source: U.S. Bancorp