Atlanta-based building products distributor U.S. Lumber will be infused with private equity money as part of a plan to grow its product mix and geographic footprint.
Madison Dearborn Partners, a Chicago-based private equity firm, agreed to make a “strategic growth investment" in U.S. Lumber, a two-step distribuotor in the eastern U.S. The existing management team of U.S. Lumber will remain in place. The dollar amount of the investment was not released.
“We are thrilled to be working with MDP,” said U.S. Lumber president and CEO Jeff McLendon. “The resources and expertise they bring to our relationship will accelerate our opportunity for product and geographic growth. Coupling our combined resources with a shared set of values between our two organizations should enhance our supplier relationships and customer offerings while also advancing our growth plans.”
U.S. Lumber is a company with over $500 million in revenue. It was formed by the merger in 1998 of Atlantic Trading Company and Bestwood Forest Products. The company serves more than 4,000 pro dealer and retail customers in 23 U.S. states from distribution centers in Atlanta; Greenville, S.C.; Raleigh, N.C.; Nashville, Tenn.; Jacksonville, Fla.; central Florida, Mobile, Ala.; Baltimore and Boston.
Of the company’s nine locations, five were successfully green-fielded, said founder and executive chairman Lawrence Newton.
Newton added: “With MDP on board, we now have an even greater opportunity to serve our suppliers and customers with additional geographical expansion through acquisition.”