US LBM to be acquired by Bain Capital

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BUFFALO GROVE, Ill. — On the heels of recent rumors that the investment firm holding US LBM was considering sale of the industry-leading distributor, US LBM announced today that it has signed a definitive agreement for Bain Capital Private Equity to acquire a majority stake in the company.

US LBM will continue to operate under the leadership of President and CEO L.T. Gibson and the current management team. Financial terms of the private transaction were not disclosed.

Founded in 2009 with 16 locations in three states, US LBM has grown to more than 250 locations. The company’s operating model combines the advantages of its national scale and central team of industry experts with the local expertise of its 37 operating divisions. Since US LBM’s founding, it has grown through acquisitions and has opened more than 30 greenfield locations, including six this year.

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“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,” said Gibson. “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.”

“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,” said Stephen Thomas, a managing director at Bain Capital Private Equity. “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.”

Bain Capital Private Equity’s investments include HD Supply Holdings, Inc., Imperial Dade, Dealer Tire, LLC, Consolis SAS, Ibstock PLC, and MKM Building Supplies.

The transaction is expected to close in December 2020 and is subject to customary closing conditions, including requisite regulatory approvals.

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