Specialty Building Products (SBP) signed a definitive agreement to sell majority ownership of the company to middle-market private equity firm The Jordan Company (TJC). TJC will acquire a majority ownership in SBP from funds affiliation with Madison Dearborn Partners (MDP).
SBP’s senior management team, including president and CEO Jeff McLendon, will maintain a significant equity stake in the company and continue to lead the company in its next phase of growth, according to a news release. Terms of the transaction were not publicly disclosed.
SBP’s operating brands include U.S. Lumber, Alexandria Moulding, Midwest Lumber, and Mid-State Lumber. U.S. Lumber acquired Mid-State Lumber in a deal announced earlier in December.
“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.”
SBP said it expects to keep its existing senior secured notes in place to satisfy the requirements of a permitted change of control. The closing of the transaction is expected to occur in the first quarter of 2021.
“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,” Mike Denvir, a partner of TJC, said. “We have closely followed the company’s exciting expansion and are pleased to partner with the SBP team to build on this strong momentum and pursue new opportunities for growth.”
