US LBM announced the signing of a definitive agreement for Platinum Equity to acquire a stake in the company from Bain Capital Private Equity. Bain Capital and Platinum Equity will have equal ownership stakes and joint Board governance. US LBM will continue under the leadership of Founder, 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 into one of the nation’s leading distributors of specialty building materials, operating more than 450 locations throughout the country. The company offers a comprehensive portfolio of specialty products, including windows, doors, millwork, wallboard, roofing, siding, engineered components and cabinetry.
"Our strategy of combining our national scale with a strong local market focus has continued to drive significant growth for US LBM, and Bain Capital’s support has helped accelerate our expansion into several new housing markets while furthering investment in our people, operations and technology to enhance the value we bring to our suppliers, customers and communities," said Gibson. "US LBM's national platform, strong supplier relationships, commitment to operational excellence and boosting organic in-market growth continue to make us an acquirer of choice in the building materials industry. We look forward to working with Platinum and our ongoing partnership with Bain Capital. Their combined operational expertise and experience in the building products space will be a significant asset in driving the growth and expansion of our business."
Over the last three years, US LBM has approximately 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 successfully leveraged its national scale and operations while diversifying its product mix, expanding its structural components manufacturing capabilities and building deep, local customer relationships.
Platinum Equity recently signed a definitive agreement to acquire Cook & Boardman, a leading 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 leading US 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 Q1 2024 and is subject to customary closing conditions, including requisite regulatory approvals.
US LBM is the largest privately owned, full-line distributor of specialty building materials in the United States.
