Private equity firm acquiring Specialty Building Products

Specialty Building Products' sale includes distributor U.S. Lumber.

Specialty Building Products, LLC (SBP) announced that it has signed a definitive agreement to sell majority ownership of the company to The Jordan Company (TJC).

TJC is a New York-based middle-market private equity firm and is acquiring a major stake of SBP from funds affiliated with Madison Dearborn Partners (MDP), based in Chicago. 

SBP’s senior management team, including President and CEO Jeff McLendon, will maintain a significant equity stake in SBP and continue to lead the company through its next phase of growth. Terms of the transaction were not disclosed.

SBP’s operating brands include U.S. Lumber, Alexandria Moulding, Midwest Lumber, and Mid-State Lumber. U.S. Lumber acquired Mid-State Lumber earlier this month.

“At the heart of our business is a commitment to delivering best-in-class specialty building products and service to our customers,” McLendon said. “We have had a terrific partnership with MDP and are excited to have found an equally strong new partner in TJC, who is aligned with our vision and committed to helping us pursue our next chapter of customer-focused growth.”

Mike Denvir, partner of TJC, added, “As it has become a national-scale distributor of building materials in North America, Specialty Building Products has become one of the most reliable and trusted names in the business. We have closely followed the company’s exciting expansion and we are pleased to partner with the SBP team to build on this strong momentum and pursue new opportunities for growth.”

The company said that it expects to keep its existing senior secured notes in place and to satisfy the requirements of a permitted change of control  The closing of TJC’s majority investment in SBP is expected to occur in the first quarter of 2021, subject to the satisfaction of customary closing conditions.

“We’re proud to have supported the entire SBP team in the successful execution of their growth plan,” said Rich Copans, managing director and co-head of MDP’s Basic Industries team. “SBP is an industry leader with highly respected operating brands, a well-diversified geographic footprint and an unmatched portfolio of value-added specialty building materials. We wish Jeff and the entire SBP team well as they embark on what we are confident will be a continued upward trajectory in partnership with TJC.”

BofA Securities and RBC Capital Markets, LLC are acting as financial advisors and Kirkland & Ellis LLP is serving as legal counsel to Specialty Building Products and MDP. Nomura Securities Co. is acting as financial advisor and Winston & Strawn LLP is serving as legal counsel to The Jordan Company.