Bain Capital offering notes in US LBM acquisition

Bain Capital announced that it will partially finance its acquisition of US LBM through a senior note offering.

Under terms of the transaction, Bain Capital affiliate BCPE Ulysses Merger Sub, Inc. (Merger Sub) will offer $390 million in aggregate principal amount of senior notes due 2028. Funds from the offering will be used for the acquisition of US LBM parent company LBM Acquisition, LLC.

Upon completion of the offering, Merger Sub will merge with and into LBM Acquisition, LLC, with the latter continuing as the surviving entity, the companies reported.

Merger Sub also plans to finance the acquisition with borrowings under new senior secured credit facilities.

Based in Buffalo Grove, Ill., US LBM operates more than 250 locations across the country. The building materials distributor and pro dealer had sales of $3.5 billion in 2019.

Earlier this week, US LBM reported that it had acquired Connecticut pro dealer Ridgefield Supply Company.

Bain Captial and US LBM announced their deal on Nov. 13. Terms of the acquisition were not disclosed.

Based in Boston, Bain Capital is an investment firm specializing in private equity, venture capital, credit, public equity, and real estate, among other fields.