US LBM Holdings LLC, one of the largest building materials distributors in the United States, is exploring a sale that could value it at close to $1 billion, including debt, people familiar with the matter said on Thursday.
US LBM’s private equity owner, BlackEagle Partners LLC, has hired Harris Williams & Co to run an auction for the company, the people said.
US LBM has annual earnings before interest, tax, depreciation and amortization (EBITDA) of more than $100 million, the people added.
The sources asked not to be identified because the sale process is confidential. US LBM, BlackEagle Partners and Harris Williams declined to comment.
Dealmaking in the building materials sector has picked up as companies seek to develop synergies and better position themselves for the gradual recovery in the housing market.
Earlier this week, Builders FirstSource Inc, a U.S. supplier of residential building products, said it would buy private equity-owned peer ProBuild Holdings LLC for $1.63 billion in cash. The deal valued ProBuild at 9.6 times its adjusted 2014 EBITDA.
Based in Green Bay, Wisconsin, US LBM provides lumber, roof and floor trusses, siding, and other building materials to custom homebuilders and professional remodelers, as well as multifamily and commercial contractors, in 21 states.
The company was created by BlackEagle Partners in 2009 as a platform with which to acquire building material distributors. It currently owns 18 such companies.
(Reporting by Greg Roumeliotis in New York; Editing by Bernard Orr)