According to those with knowledge of the situation, Bain Capital is considering selling a small portion of US LBM, which could value the building materials company at $7 billion or more, including debt.
According to the individuals, who requested anonymity because they lacked official authority to speak to the media, the corporation is collaborating with an adviser to conduct an auction procedure for a 49% interest. According to the sources, other private equity groups may be interested in the share. The conditions of the sale could alter, or Bain could decide to preserve its investment, the people said; no final decision has been made.
A spokeswoman for US LBM did not immediately reply to demands for comment, while a representative for Bain declined to do so.
According to information gathered by Bloomberg, Bain has committed to purchase US LBM in 2020 using a $1.35 billion term loan and a $500 million bond. A payment-in-kind bond was used to provide a $400 million dividend to the company shortly after the acquisition. This bond enables the company to repay the interest by issuing further debt instead of cash.
According to its website, US LBM is the biggest privately held distributor of specialist building materials in the US, with more than 400 locations. Windows, doors, wallboard, roofing, siding, engineered components, and cabinetry are all part of its range.