U.S. Lumber receives equity from Madison Dearborn Partners
ATLANTA - U.S. Lumber Group signed an agreement for a strategic growth investment from Chicago-based Madison Dearborn Partners private equity firm.
U.S. Lumber, with some $500 million in revenue, was formed by the merger in 1998 of Atlantic Trading Company and Bestwood Forest Products.A specialty building products seller with markets cetnered in the Eastern United States, U.S. Lumber's existing management, including CEO Jeff McLendon, will remain in place to execute a strategy of pursuing geographic and product offering expansion.
"We are thrilled to be working with MDP," McLendon says. "The resources and expertise they bring to our relationship will accelerate our opportunity for product and geographic growth."
U.S. Lumber locations
U.S. Lumber founder and executive chairman Lawrence Newton says the partnership with Madison Dearborn will finance more acquisitions.
"We have successfully green-fielded five of our nine locations, says Newtown. "With MDP on board we now have an even greater opportunity to serve our suppliers and customers with additional geographical expansion through acquisition."
Headquartered in Atlanta, U.S. Lumber serves over 4,000 pro-dealer and retail customers in 23 U.S. states from distribution centers in Atlanta, Greenville, Raleigh, Nashville, Jacksonville, Central Florida, Mobile, Baltimore and Boston. U.S. LUMBER also maintains two strategic re-load facilities to streamline the flow of product from its supply partners to its distribution centers.
Richard Copans, a Managing Director at Madison Dearborn Partner' Basic Industries team, said says his firm shares "a strategic vision of where this business can go, and we look forward to utilizing our expertise in growing and scaling businesses." RBC Capital Markets and Dentons advised U.S. Lumber, while Kirkland & Ellis worked with Madison Dearborn.
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