Kelso & Co to acquire US LBM Holdings
It's official. US LBM Holdings announced on Wednesday afternoon a new ownership deal.
Private equity firm Kelso & Company entered an agreement to purchase a majority of the equity interests in Green Bay, Wisconsin-based US LBM Holdings. BlackEagle Partners LLC and certain members of US LBM will be investors alongside Kelso, according to the announcement.
It's official. US LBM Holdings announced on Wednesday afternoon a new ownership deal.
Private equity firm Kelso & Company entered an agreement to purchase a majority of the equity interests in Green Bay, Wisconsin-based US LBM Holdings. BlackEagle Partners LLC and certain members of US LBM will be investors alongside Kelso, according to the announcement.
Terms of the deal were not disclosed. Previous media reports estimated the size of the deal at about $1 billion.
"Our partnership with BlackEagle has led to the creation of a leader in building products distribution," said L.T. Gibson, CEO of US LBM. "We are excited about Kelso's investment in the business and the new partnership between Kelso, BlackEagle and management. We look forward to working with our shareholders to continue to build and grow the company."
US LBM Holdings was the 2013 HBSDealer Pro Dealer of the Year, one of several awards for the collection of leading building material dealers in 22 states. The lumberyard company promotes a philosophy of local management and leadership.
"We are pleased to be partnering with Black Eagle, L.T. and the impressive team at US LBM, both at the corporate level and at the individual business units," said Sandy Osborne, managing director at Kelso. "We are excited to support the company as it continues its growth."
US LBM, which has about 160 locations, has made a flurry of acquisitions in recent months. It has recently acquired Rosen Materials in Florida, Lampert Lumber in Minnesota and New Jersey-based Direct Cabinet Sales.
Michael Madden, managing partner of BlackEagle, said: "We have worked alongside L.T. and his team for six years to build a world-class company, and we look forward to continuing the company's upward trajectory in partnership with Kelso."