Bain Capital is considering a sale of a minority stake in US LBM that could value the building materials group at about $7 billion or more, including debt, according to people familiar with the matter.
(Bloomberg) — Bain Capital is considering a sale of a minority stake in US LBM that could value the building materials group at about $7 billion or more, including debt, according to people familiar with the matter.
The company is working with an adviser to run an auction process for a 49% stake, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The stake is likely to interest other private equity firms, the people said. No final decision has been made, terms of the sale could change or Bain could opt to keep the stake, the people added.
A representative for Bain declined to comment, while a representative for US LBM didn’t immediately respond to requests seeking comment.
Bain agreed to acquire US LBM in 2020 using a $1.35 billion term loan and $500 million bond, according to data compiled by Bloomberg. Shortly after the acquisition it paid itself a $400 million dividend using a payment in kind bond, which allows the company to repay the interest with more debt in lieu of cash.
US LBM is the largest privately owned, distributor of specialty building materials in the US with more than 400 locations, according to its website. Its portfolio includes including windows, doors, wallboard, roofing, siding, engineered components and cabinetry.
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