Specialty Building Products (SBP), a distributor of specialty building products in North America, has signed a definitive agreement whereby The Jordan Company (TJC) will acquire a majority ownership position in SBP from funds affiliated with Madison Dearborn Partners (MDP).
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 are U.S. LUMBER, Alexandria Moulding, Midwest Lumber and Mid-State Lumber. These wholly-owned subsidiaries provide sales, marketing and logistic solutions, while offering the brands and specialty building products to dealers serving the repair and remodel and new construction marketplaces.
"At the heart of our business is a commitment to delivering best-in-class specialty building products and service to our customers," McLendon says. "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, adds, "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."
"We're proud to have supported the entire SBP team in the successful execution of their growth plan," says 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."
The company expects to keep its existing senior secured notes in place and to satisfy the requirements of a Permitted Change of Control (as such term is defined in the Indenture).
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.
BofA Securities and RBC Capital Markets are acting as financial advisors and Kirkland & Ellis is serving as legal counsel to Specialty Building Products and MDP. Nomura Securities Co. is acting as financial advisor and Winston & Strawn is serving as legal counsel to The Jordan Company.
