US LBM To Acquire American Construction Source

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US LBM, announced today the acquisition of American Construction Source (“ACS”), a leading national building materials distribution platform for custom home builders and repair and remodel contractors.

Following the completion of the acquisition, US LBM will operate nearly 400 locations across the country. The leading building materials distributor to expand its reach in Midwest, Western and Northwestern US.

The portfolio of American Construction Source includes multiple locally branded building material distributors and manufacturers with over 70 locations in Arizona, Arkansas, California, Colorado, Minnesota, Missouri, Nevada, Washington, and Wisconsin. Angeles Equity Partners, LLC and Clearlake Capital Group, L.P. have invested in the company.

“With the addition of the ACS portfolio, US LBM will strengthen our position in the Midwest and California, and expand our reach to Colorado and Washington, two quickly growing construction markets,” said L.T. Gibson, President, and CEO of US LBM.

“We look forward to working with the ACS team and their local operators to continue leveraging their strong relationships, experience, and teams to grow in their respective markets.”

“ACS joining US LBM is a perfect outcome based on the alignment of our shared strategy to preserve longstanding local lumberyard brands and operations while delivering a great customer experience,” ACS CEO James Drexinger stated.

“We are grateful to our customers, suppliers, leadership team, salespeople, and associates for their support. Together we have built a significant industry platform while simultaneously honoring the 100-plus year heritage of the local brands and family legacies we have acquired.”

Since its inception in 2009, US LBM has completed more than 65 acquisitions, including four since being acquired by Bain Capital Private Equity in late 2020. Higginbotham Brothers, a building products dealer with 40 locations in Texas and Oklahoma, was acquired by US LBM on May 3.

The private transaction’s financial terms were not disclosed. The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions such as regulatory approvals.

Barclays and Credit Suisse are leading the debt financing for the transaction. Bain Capital Private Equity’s legal counsel is Kirkland & Ellis LLP.

Jack is one of our correspondents who provide mainly on building industry trend updates.