US LBM acquiring American Construction Source
In the latest mega move between pro dealers, US LBM announced this morning that it has reached an agreement to acquire American Construction Source.
American Construction Source's portfolio consists of multiple locally branded building material distributors and manufacturers, operating more than 70 locations in Arizona, Arkansas, California, Colorado, Minnesota, Missouri, Nevada, Washington and Wisconsin. The company is backed by Angeles Equity Partners, LLC and Clearlake Capital Group, L.P.
"With the addition of the ACS portfolio, US LBM will strengthen our position in the Midwest and California, and expand our reach to Colorado and Washington, two quickly growing construction markets," said US LBM President and CEO L.T. Gibson. "We look forward to working with the ACS team and their local operators to continue leveraging their strong relationships, experience and teams to grow in their respective markets."
Upon completion of the acquisition, US LBM will operate nearly 400 locations nationwide. Financial terms of the acquisition were not disclosed.
"ACS joining US LBM is a perfect outcome based on the alignment of our shared strategy to preserve longstanding local lumberyard brands and operations while delivering a great customer experience," said James Drexinger, CEO of ACS. "We are grateful to our customers, suppliers, leadership team, salespeople and associates for their support. Together we have built a significant industry platform while simultaneously honoring the 100-plus year heritage of the local brands and family legacies we have acquired."
American Construction Source made big noise when it was launched in 2018 with the acquisition of more than 50 Meek's Lumber locations in Missouri, California, Nevada and Arkansas. In 2020, the company made more noise with the acquisition of Homewood Holdings LLC. Since its inception nearly three years ago, ACS made 9 key acquisitions altogether.
This transaction is expected to close during the third quarter of 2021 and is subject to customary closing conditions, including requisite regulatory approvals.
US LBM has completed more than 65 acquisitions since it was founded in 2009, including four since being acquired by Bain Capital Private Equity in late 2020. On May 3, US LBM announced the acquisition of Higginbotham Brothers, a building products dealer with 40 locations in Texas and Oklahoma.
