American Industrial Partners acquired Potomac softwood mill

Dec 20, 2012. /Lesprom Network/. American Industrial Partners ("AIP") has acquired the operating assets of Potomac Supply Corporation, a softwood mill operator and provider of wood treatment services located in Kinsale, VA, USA, as the company said in the press release received by Lesprom Network. The new company, renamed Potomac Supply, LLC, is capitalized entirely with equity and has no debt. The transaction marks the fund's fifth platform investment in 2012 and the sixth investment in the building products industry over the last 18 months. Located 70 miles northeast of Richmond, Potomac operates a 679,000 square foot yellow pine sawmill with 75 million board feet of capacity on a two shift operating basis. On the same campus, the company also operates modern wood treating retorts. Potomac sells dimensional lumber in kiln dried and treated form. In addition, the company sells landscaping timbers and other specialty products such as wood fuel pellets, shavings, fencing components and pallets. "Although the company's operations have been challenged in recent years, its facilities are modern and competitive," said Rick Hoffman of AIP. "Potomac is an ideal platform for our thesis in softwoods and wood treating and we look forward to working with management to drive growth and margin improvement." "I am extremely pleased to be partnering with the AIP. We share the commitment to build on Potomac's strong history in the building products industry and deliver expanded capabilities and value to our customers," said Darrell Keeling, CEO of Potomac. "It is a good day when we can support the community by giving an institution like Potomac a new future." American Industrial Partners ("AIP") is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets.