lumber

BlackEagle Acquires Standard Companies

by

US LBM Holdings, a building products platform of BlackEagle Partners formed in 2009, has acquired Standard Companies from the Rottschafer family, the third generation of the company’s original founding family.

Standard is a building material distributor in Western Michigan, providing cabinetry, windows, doors, trusses, components, roofing, siding, and framing materials for the professional builder. The company has 8 cabinetry showrooms, 6 building material distribution centers, and a component manufacturing facility.  Standard was founded in 1904 by Omge and Kenelska Rottschafer, who emigrated from the Netherlands to Holland, Michigan, at the turn of the century. The year 2014 marked the 110th anniversary of the company. Standard is based in Grand Rapids, MI (www.standardcompanies.com).

US LBM currently consists of 14 building material distributors serving the Midwest, Northeast, Southeast, Mid-Atlantic, and Western US in 12 states with more than 80 locations. The company is headquartered in Green Bay, WI (www.uslbm.com).

“Standard is a great addition to the US LBM team, expanding our presence and capabilities in the Western Michigan market,” said L.T. Gibson, President & CEO of US LBM. “Standard’s dedicated and knowledgeable team of associates has succeeded by providing a local feel and focus to their customer needs, which aligns perfectly with the goals of US LBM. We look forward to continuing and expanding upon their success.”

BlueWater Partners, an investment bank based in Grand Rapids, MI, served as the exclusive financial advisor to Standard (www.bluewaterpartners.com).

“We are excited and proud to join the US LBM team and the opportunity it brings to provide our customers with continued enhancements to our product and service offering,” said Tim Rottschafer, the President of Standard.  “This partnership with US LBM provides a platform for growth to our associates and partners for the future.”

BlackEagle Partners is a middle market private equity firm that seeks to acquire 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 Bloomfield Hills, MI and New York, NY (www.blackeaglepartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-13-14

Littlejohn & Co. Acquires Northwest Hardwoods

by

Littlejohn & Co. has acquired Northwest Hardwoods, a manufacturer and distributor of North American hardwood lumber, from American Industrial Partners (AIP).

Northwest Hardwoods (NWH) serves the repair and remodel, residential construction, industrial, and export markets.  The company converts hardwood logs into rough cut and kiln dried lumber, and then planes and sorts the lumber boards into an array of grades for appearance wood applications.  NWH’s lumber is a primary material used in the manufacturing of kitchen cabinets, hardwood flooring, molding, millwork, commercial interiors, furniture, recreational vehicles, musical instruments, railroad ties, and pallets.  NWH is also one of North America’s largest importers of tropical hardwood lumber and hardwood plywood panels and operates a distribution network that serves over 1,660 customers worldwide. The company is headquartered in Tacoma, WA (northwesthardwoods.com).

“We are thrilled to acquire such a high quality business that fits well within our investment focus,” said Edmund Feeley, Managing Director of Littlejohn.  “NWH has built a strong business and an outstanding reputation for working closely with customers and providing quality hardwood products.  We look forward to building its geographic reach and further enhancing its exceptional customer service.”

Littlejohn & Co. makes control and non-control investments in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth. Littlejohn invests in middle market companies with annual revenues typically between $100 million and $800 million, and generally invests $50 to $150 million of equity in its private equity investments.  The firm invests across a broad range of industries and acquires manufacturers, distributors, and service providers. Littlejohn is currently investing from Littlejohn Fund V which has over $2 billion in capital commitments. The firm is based in Greenwich, CT (www.littlejohnllc.com).

“We are grateful to have had the opportunity to partner with an extraordinary management team led by TJ Rosengarth in our carve-out of NWH from Weyerhaeuser Company three years ago,” said Richard Hoffman, Partner at American Industrial Partners.

American Industrial Partners invests in North American headquartered industrial companies with sales ranging from $100 million to $750 million. The firm was founded in 1989 and is currently managing more than $1.1 billion in equity capital. American Industrial Partners was founded in 1989 and is based in New York (www.americanindustrial.com).

Littlejohn was advised by Gibson, Dunn & Crutcher and Morgan Stanley.  AIP was advised by Baker Botts and Goldman, Sachs & Co.

2014 PEPD • Private Equity’s Leading News Magazine • 7-18-14

Brookfield Asset Management Exits Ainsworth Lumber

by

Louisiana-Pacific Corporation (LP) and Ainsworth Lumber Co. today announced that they have signed an agreement under which LP will acquire all of the outstanding common shares of Ainsworth for a total consideration of C$3.76 per Ainsworth common share or a total equity value of approximately US$1.1 billion. Ainsworth Lumber Co. is 54% owned by Brookfield Asset Management.

Ainsworth is a manufacturer and marketer of oriented strand board (OSB) with a focus on value-added specialty products for markets in North America and Asia. Ainsworth’s four OSB manufacturing facilities, located in Alberta, British Columbia and Ontario, have a combined annual capacity of 2.5 billion square feet (3/8-inch basis), with the potential to increase capacity to 3.1 billion square feet (3/8-inch basis) with the expansion at Ainsworth’s mill in Grande Prairie, Alberta. Ainsworth is headquartered in Vancouver (www.ainsworthengineered.com).

Louisiana-Pacific Corporation (NYSE: LPX) is a manufacturer of quality engineered wood building materials including OSB, structural framing products, and exterior siding for use in residential, industrial and light commercial construction. From manufacturing facilities in the US, Canada, Chile and Brazil, LP products are sold to builders and homeowners through building materials distributors and dealers and retail home centers. Founded in 1973, LP is headquartered in Nashville (www.lpcorp.com).

Louisiana-Pacific will finance the cash component of the transaction through a combination of cash on the Louisiana-Pacific and Ainsworth balance sheets and new borrowings. Louisiana-Pacific has obtained a commitment for a senior secured term loan from Goldman, Sachs & Co. and BMO Capital Markets. The company currently plans to have Ainsworth’s current debt remain outstanding.

“This is an excellent transaction that makes LP more valuable for our customers and our shareholders,” said Curt Stevens, LP’s CEO. “Ainsworth has very high quality assets and provides us with an expanded suite of strand-based products and technologies, additional access to key international growth markets, particularly in Asia, and enhanced scale and efficiencies in North America. We have great respect for Ainsworth and its people, and we intend to take the best of both companies to create a leading provider of strand-based products that is well positioned to meet the evolving needs of customers in North America and abroad.”

“The APA (American Plywood Association) consensus projection for U.S. housing starts for the full year 2013 is 957,000, an increase of 23% from 2012. For 2014, the APA consensus projection is approximately 1.2 million starts. We believe the acquisition of Ainsworth provides LP with greater flexibility and exposure to this recovery,” said Mr. Stevens.

LP’s financial advisers are Goldman, Sachs & Co. and BMO Capital Markets. Its legal advisers are Jones Day, Stikeman Elliott LLP, and Orrick, Herrington & Sutcliffe LLP. Ainsworth’s financial adviser is RBC Capital Markets and its legal advisers are Goodmans LLP and Skadden, Arps, Slate, Meagher & Flom LLP.

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-5-13

Blue Wolf Capital Acquires Suwannee Lumber

by

Blue Wolf Capital Partners has acquired substantially all of the assets of Suwannee Lumber Co., a manufacturer of softwood lumber. The company’s CEO, Frank “Bump” Faircloth, and President, Daniel Dickert, invested alongside Blue Wolf and will remain with the company as will others on the management team. Blue Wolf made the investment in Suwannee Lumber through Blue Wolf Capital Fund III, LP.

Suwannee Lumber is a manufacturer of softwood lumber producing Southern Yellow Pine products used primarily in decking and durable outdoor construction. Suwannee operates a 150 million board foot sawmill operation and supplies decking and dimensional lumber to customers in the Southeast, Mid-Atlantic and Northeast United States. Suwannee also operates a ground cover division that provides manufacturing and bagging of various mulch and soil products as well as a retail hardware store (Florida Forest Products) and firewood operation (Lite My Fire). The company was founded in 1954 and is headquartered in Cross City, FL, with additional operations in Lake City, FL and Adel, GA (www.suwanneelumber.com).

“Strong regional players like Suwannee with solid business models that can also benefit from strategic operational improvements are ideal investments for Blue Wolf. Suwannee is well-positioned in an industry that is showing many positive trends – we are looking forward to working with Bump and his team to build upon the company’s success,” said Adam Blumenthal, Managing Partner at Blue Wolf.

Blue Wolf invests in companies in which effective management of relationships with complex constituencies, such as government and labor, can change organizations and create value. The firm’s investment criteria are minimum revenues of $25 million; minimum transaction size of $20 million; and a minimum investment size of $10 million. Blue Wolf focuses its efforts on companies based in and doing the bulk of their business in the United States and Canada. The firm is headquartered in New York (www.blue-wolf.com).

“We are excited by the opportunity to partner with Blue Wolf. Their operating experience and vision will be invaluable as we continue to modernize our operations and increase capacity in order to take advantage of the rebounding housing construction and remodeling markets,” said Mr. Faircloth.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-1-13