Kelso & Company has agreed to acquire a majority equity interest in US LBM Holdings, a distributor of building products material, from BlackEagle Partners. BlackEagle and members of the company’s management team will continue to hold a minority interest in the company.
US LBM is a building products distribution platform formed by BlackEagle in 2009. Through a series of acquisitions, US LBM now serves builders, remodelers and specialty contractors throughout the US with 157 locations in 22 states. The company is headquartered in Green Bay, WI (www.uslbm.com).
“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.”
BlackEagle Partners is a middle market private equity firm that acquires underperforming and distressed businesses, non-core subsidiaries, and companies in out-of-favor industries. The firm invests between $5 million and $25 million in businesses in a variety of industries and in situations ranging from companies with current operational losses, in or near bankruptcy, to profitable situations where a change in ownership can revitalize the outlook. The firm has offices in the Detroit suburb of Bloomfield Hills and in New York (www.blackeaglepartners.com).
“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,” said Michael Madden, Managing Partner of BlackEagle.
“We are pleased to be partnering with BlackEagle, L.T. and the 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.”
Kelso is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has made investments in over 115 companies in a range of industry sectors. The firm is currently investing its eighth investment partnership, Kelso Investment Associates VIII, LP, with $5.1 billion of committed capital. Kelso was founded in 1971 by Louis Kelso and is based in New York (www.kelso.com).
Credit Suisse advised Kelso on the transaction and Harris Williams advised US LBM.
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-31-15