Key Takeaways
- • Platinum Equity has acquired an equal co-controlling stake in US LBM from Bain Capital Private Equity, with both firms holding 50% ownership and joint Board governance under a definitive agreement signed October 16, 2023.
- • US LBM, founded in 2009 and grown to 450+ locations across the country, will remain under the leadership of Founder, President and CEO L.T. Gibson and the existing management team, with no operational disruption expected.
- • The specialty building materials distributor operates a comprehensive portfolio including windows, doors, millwork, wallboard, roofing, siding, engineered components, and cabinetry, positioning it as a consolidation platform in the fragmented building materials sector.
- • Financial terms were not disclosed, maintaining standard privacy for this dual-sponsor private equity recapitalization structure.
- • The transaction underscores continued investor appetite for specialty building materials distribution, a sector benefiting from national scale combined with localized market execution and M&A integration capabilities.
Summary
US LBM, a leading specialty building materials distributor, has announced a definitive agreement restructuring its ownership through a joint acquisition by Platinum Equity and existing investor Bain Capital Private Equity. Under the terms announced October 16, 2023, Platinum Equity is acquiring a stake from Bain Capital such that both firms will hold equal 50% ownership stakes with joint Board governance. The transaction maintains continuity in operational leadership, with L.T. Gibson remaining as Founder, President, and CEO alongside the current management team.
Since its founding in 2009 with just 16 locations across three states, US LBM has expanded into one of the nation's largest specialty building materials distributors, operating more than 450 locations nationwide. The company provides a comprehensive product portfolio encompassing windows, doors, millwork, wallboard, roofing, siding, engineered components, and cabinetry. According to Gibson, the company's strategy of combining national scale with localized market focus has driven sustained growth, with Bain Capital's support enabling expansion into new housing markets and increased investment in people, operations, and technology infrastructure.
The restructured ownership arrangement reflects a common private equity exit strategy wherein an existing sponsor sells a co-control stake to a new financial partner rather than pursuing a full exit. This structure allows both Bain Capital and Platinum Equity to maintain significant board-level influence while allowing the company to benefit from both sponsors' operational, financial, and industry expertise. US LBM's positioning as an acquirer of choice in the fragmented building materials distribution sector—leveraging strong supplier relationships, operational excellence, and organic in-market growth—suggests the company remains strategically attractive to institutional capital. Financial terms were not disclosed, consistent with standard confidentiality provisions in private transactions of this scale.
Since its founding in 2009 with just 16 locations across three states, US LBM has expanded into one of the nation's largest specialty building materials distributors, operating more than 450 locations nationwide. The company provides a comprehensive product portfolio encompassing windows, doors, millwork, wallboard, roofing, siding, engineered components, and cabinetry. According to Gibson, the company's strategy of combining national scale with localized market focus has driven sustained growth, with Bain Capital's support enabling expansion into new housing markets and increased investment in people, operations, and technology infrastructure.
The restructured ownership arrangement reflects a common private equity exit strategy wherein an existing sponsor sells a co-control stake to a new financial partner rather than pursuing a full exit. This structure allows both Bain Capital and Platinum Equity to maintain significant board-level influence while allowing the company to benefit from both sponsors' operational, financial, and industry expertise. US LBM's positioning as an acquirer of choice in the fragmented building materials distribution sector—leveraging strong supplier relationships, operational excellence, and organic in-market growth—suggests the company remains strategically attractive to institutional capital. Financial terms were not disclosed, consistent with standard confidentiality provisions in private transactions of this scale.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.