Housing

US LBM Gears Up for IPO

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US LBM Holdings has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million, although this number is usually just a place holder. The company intends to list its shares on the New York Stock Exchange under the symbol LBM.

The underwriters for the offering are Barclays, RBC Capital Markets and Credit Suisse.

This is one of the leading and fastest growing distributors of specialty building materials in the United States. Management believes that its differentiated operating model, technology capabilities and broad offering of specialty products enable it to distinguish itself from both local and national competitors within the industry.

US LBM was founded in 2009 as three business units with 16 locations. Since then it has rapidly grown through acquisitions, market share gains and the opening of new “greenfield” locations. In the same time, the company has acquired over 40 companies and opened 19 new greenfield locations, expanding to 240 locations serving 29 states.

In terms of its finances, US LBM detailed in the filing:

In fiscal year 2016, we generated $2.7 billion of net sales, $47.7 million of net loss and $187.9 million of Adjusted EBITDA. During the last five years, we have delivered significant above market sales growth, growing comparable location sales on average 712 basis points faster than our addressable market, and have grown total net sales at a compound annual growth rate, or CAGR, of 50.1%. In addition, our significant number of acquisitions during this period coupled with our differentiated operating model and focus on operational excellence have resulted in growth in Adjusted EBITDA at a CAGR of 91.6% since 2012.

The company intends to use the net proceeds from this offering for net interest in the controlling company, US LBM LLC, as well as to repay indebtedness. The remainder would be put toward working capital and general corporate purposes.

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