US LBM President and CEO LT Gibson.
"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."
The transaction is expected to close in December 2020 and is subject to customary closing conditions, including requisite regulatory approvals.
Debt financing for the transaction is being led by Barclays and will comprise of a new asset based revolving credit facility and a combination of other new debt financing.
"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."
Barclays is serving as financial advisor, Debevoise & Plimpton as legal counsel, and Ernst & Young as accounting advisor to Kelso and US LBM. Kirkland and Ellis LLP is serving as legal counsel, and PwC as accounting advisor to Bain Capital Private Equity.