Deal makes LBM the 10th largest lumber supplier in the USA.
BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Edward Hines Lumber Co., which began operations in Chicago in 1892, has announced the signing of a purchase agreement with US LBM Holdings, LLC, a portfolio company of BlackEagle Partners, LLC. US LBM intends to acquire the operations of Edward Hines Lumber Co. as well as certain of its subsidiaries, including Hall & House serving the Indiana building community, upon the approval of an assignment of benefit to creditors proceeding. This acquisition will make US LBM the 10th largest distributor of lumber and building materials in the United States according to 2009 ProSales 100.
“Hines Lumber has a 118 year history of serving the needs of Chicago-area professional builders and remodelers. We are proud to be part of their continuing success.”
In order to allow Hines Lumber and Hall & House to continue operations during this process in the normal course of business, including paying employee wages and making payments to vendors and suppliers, and to complete the sale to US LBM, an affiliate of BlackEagle has agreed to provide financing to Hines Lumber and Hall & House.
“Being able to combine the resources of US LBM and Hines Lumber is a rare opportunity,” according to Jason Runco of BlackEagle Partners. “Hines Lumber has a 118 year history of serving the needs of Chicago-area professional builders and remodelers. We are proud to be part of their continuing success.”
The addition of Hines Lumber and Hall & House to US LBM substantially expands its operations, growing it to 30 locations serving six states with approximately 850 associates. In addition to a strong presence already in Chicago, US LBM plans on expanding operations opening the former Hines Lumber location in Mokena, Illinois.
“We are excited to have Hines Lumber and Hall & House as part of our expanding line-up of building supply businesses,” according to L.T. Gibson, President and CEO of US LBM. “Hines Lumber is synonymous with residential building in the Chicago area. The company is part of the business fabric of Chicago and the surrounding communities.”
The approval of the transaction is scheduled on March 17, 2010. Until then, both Hines Lumber and Hall & House will continue operating in the normal course of business.
Edward Hines Lumber Co.
The company began operations in 1892. Hines Lumber operates five lumberyards and specialty centers. The company provides decking, dimensional and engineered lumber, exterior and interior doors, floor and roof trusses as well as custom millwork and kitchen design. Hines Lumber was among the first companies to separate delivery of lumber into standard sizes and grades based upon customer needs.
With offices in New York, New York and Bloomfield Hills, Michigan, BlackEagle Partners is an operations focused, middle market private equity firm that seeks to acquire underperforming and distressed businesses, non-core subsidiaries and companies in out-of-favor industries. BlackEagle seeks businesses with enterprise values below $200 million.
Among its acquisitions is InStar Services Group. This acquisition was named Private Equity Partner Turnaround Deal of the Year by Global M&A Network. The award recognizes BlackEagle Partners’ 2008 work in the acquisition of InStar from The ServiceMaster Company.
BlackEagle and Building Industry Partners, LLC sponsored a newly formed entity: US LBM Holdings in 2009. The company subsequently acquired four regional operations from Stock Building Supply, LLC. www.blackeaglepartners.com
US LBM Holdings
US LBM Holdings, headquartered in Green Bay, Wisconsin, is now the nation’s 10th largest distributor of lumber and building supplies. With over 850 associates and 30 locations, US LBM meets the needs of builders, including custom builders and professional remodelers in Wisconsin, Illinois, Indiana, Pennsylvania, Connecticut and New York. Implementing the philosophy of local management and leadership, US LBM capitalizes on the solid reputation, one-on-one customer relationships that each location is known for in their markets. US LBM seeks to acquire operations with #1 or #2 market share, supported by strong local management. www.uslbm.com