Kelso Plans $2.5 billion Sale of Building Supply Company U.S. LBM

Private equity firm Kelso & Co. is considering a sale of building-products distributor U.S. LBM Holdings LLC that could value it at about $2.5 billion, according to people familiar with the matter.

Kelso is working with an adviser to run an auction process for U.S. LBM, said the people, who asked not to be identified because the information is private. U.S. LBM, based in Buffalo Grove, Illinois, is expected to attract interest from peers and other private equity firms, the people said.

A final decision on pursuing a sale hasn’t been made and Kelso’s plans could still change, the people said.

Representatives for New York-based Kelso and U.S. LBM didn’t respond to requests seeking comment.

Kelso bought a majority stake in U.S. LBM in 2015 from BlackEagle Partners for an undisclosed sum. The company works with builders, re-modelers and specialty contractors throughout the U.S., according to its website. Its brands include Alco Doors and Raymond Building Supply, among others.

The private equity firm, which closed its 10th fund at $2.8 billion in May 2019, has also owned stakes in Eagle Foods and Global Ship Lease, according to its website.The private equity firm, which closed its 10th fund at $2.8 billion in May 2019, has also owned stakes in Eagle Foods and Global Ship Lease, according to its website.

Source: Bloomberg