BlackEagle Partners and Building Industry Partners Form US LBM Holdings, LLC to Acquire Three Stock Building Supply Regional Operations

In aggregate, US LBM and its subsidiaries will be comprised of 13 locations and more than 500 associates servicing the professional building market with a primary focus on customers that require specialized services, such as custom homebuilders, professional remodelers as well as multifamily and commercial contractors. According to data published by ProSales Online, US LBM will the 15^th largest lumber and building materials distributor in the U.S. based on 2008 net sales. The Company will serve as a platform to make further investments and acquisitions in the pro dealer space, often in partnership with current ownership and management, that enables businesses to operate as autonomous local divisions with the capital and other resources of a much larger national organization.

“We are excited to partner with L.T. and his team of industry veterans in the acquisition of three leading building product distributors,” said Jason Runco, Partner of BlackEagle. “By focusing on smaller markets, the Company has a more diverse customer base with less national competition serving both new residential builders as well as professional remodelers,” Mr. Runco added. Harry Watson, Partner of BlackEagle, commented, “US LBM will serve as a platform in the industry as we seek to invest in or acquire complementary businesses to expand the Company’s geography and product breadth.”

Commenting on the transaction, L.T. Gibson, US LBM’s President and CEO, offered, “We found a great partner with BlackEagle. They have repeatedly shown a commitment to the success of our business in addition to providing the strategic resources that adds value to our organization in this difficult environment.” Mr. Gibson continued, “Operating as an independent company again allows us many of the freedoms to improve services to our customers. A customer can walk in and talk to the people that make the decisions. We feel that’s important.”

Matt Ogden, Managing Principal of Building Industry Partners, said, “US LBM will continue to look for outstanding private pro dealer businesses and management teams that are seeking an equity capital partner to bolster working capital, support organic and acquisition-related growth initiatives and be in position to prosper coming out of the current U.S. residential construction downturn.”

Michael DuBay of Honigman Miller Schwartz and Cohn, LLP represented BlackEagle in the acquisition and Alvarez & Marsal Transaction Advisory Group provided financial and accounting diligence.

About BlackEagle

BlackEagle Partners LLC, with offices in New York, New York and Bloomfield Hills, Michigan, 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 an enterprise value below $200 million. For more information, please visit www.blackeaglepartners.com

About Building Industry Partners

Building Industry Partners, LLC, with offices in Dallas, New York and Los Angeles, is a private equity investment and transaction advisory firm specializing in the U.S. middle market building products and construction services industry. BIP provides equity capital to management teams and private companies with $25 to $500 million in sales for purposes of growing their businesses organically or through buy-and-build acquisition strategies. For more information, please visit www.building-ip.com

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BlackEagle Partners
Kimberly Lawrence
klawrence@blackeaglepartners.com
313-647-5360