PORTFOLIO

 

Since its 2008 founding, Building Industry Partners has become the leading private equity investment firm focused on the U.S. building industry. We are fortunate to have partnered, and achieved mutual success, with some of the building industry’s most talented entrepreneurs. In turn, we’re proud to have played a part in building a number of the fastest-growing and most progressive independent manufacturers, dealers, and service providers in the building industry.

Through BIP’s model of exclusive lower middle-market building industry focus, strong alignment of vision and interests with proven operating partners, and prudent risk and reward assessment, BIP has achieved exceptional investment performance over the past decade. Since BIP’s formation in 2008, BIP principals have generated weighted-average gross equity returns on investment (ROI) of over 5.0x invested capital and 30% IRR in building industry investments. Through its Operating Partners’ exceptional performance and BIP’s focus on financial interest alignment, BIP’s portfolio company leaders have generated even greater aggregate equity returns for themselves and their operating teams during this investment period.


Current and Prior BIP Principal Investments

 

Homewood Holdings (“Homewood”)

Homewood Holdings is a fast-growing regional lumber and building materials dealer (“pro dealer”), operating through a family of highly autonomous regional pro dealer businesses in California and the Pacific Northwest.

Homewood was founded in April 2016 in partnership with 30+ year pro dealer industry veteran, Jim Stockman, to sponsor his longstanding vision of building a best-in-class pro dealer organization in his home region. BIP principals had known Jim and his track record of integrity and success in the pro dealer industry for over a decade prior to forming Homewood together.  

The Homewood family of companies includes Homewood Building Supply (greater Sacramento, CA) and Evergreen Lumber (greater Seattle, WA), totaling five operating facilities and over 250 combined employees. HBS and Evergreen serve local custom, regional, and national production homebuilders, residential and commercial contractors, and DIY customers in their respective local markets.  

Homewood continues to seek to invest in, and continue the successful legacies of, outstanding local family-owned pro dealer businesses throughout California and the Pacific Northwest.

 
 

U.S. Fence Solutions (“U.S. Fence”)

U.S. Fence Solutions is a fast-growing national fencing industry holding company, formed in May 2016 to invest in leading independent residential and commercial fencing distributors, installers, and highway guardrail and fencing fabricators in strategic U.S. markets. U.S. Fence’s Operating Companies include longstanding local and regional market leaders: Split Rail Fence & Supply (CO), Ideal Fencing (CO), and Binford Supply (TX & OK), totaling eleven (11) operating facilities and over 300 combined employees throughout Colorado, Texas, and Oklahoma.

U.S. Fence is led by 30+ year building products and trades industry veteran Andy Reed and CFO Mark Smiens, in partnership with Operating Company leaders Scott Crabtree (Split Rail), Steve Stanley (Binford), and Jim Bockelmann (Ideal), as well as their respective operating teams. 

U.S. Fence has structured successful succession and liquidity strategies for business owners, while aligning interests with go-forward management teams. U.S. Fence is actively looking to partner with, and invest in, additional strong independent residential and commercial fencing and guardrail fabrication, distribution, and installation companies throughout the U.S. 

 
 

Rugby Architectural Building Products (“Rugby”)

Rugby Architectural Building Products is a leading national one-step architectural-grade building products distributor with 29 locations across 18 states and over 500 employees.

Beginning in 2011, BIP principals supported industry veteran entrepreneurs Dave Hughes and Drew Dickinson with a minority equity and subordinated debt investment to provide growth capital for Rugby to actively pursue a “buy and build” strategy. BIP principals and Operating Advisors helped Rugby expand into new product lines, optimize operations, and expand its customer base, while also sourcing, structuring, and closing 16 acquisitions for Rugby nationwide.

After growing sales from $76 million to over $280 million, Rugby was sold to Hardwoods Distribution Inc. in 2016. This transaction provided liquidity for investors and allowed Rugby to continue operating autonomously under a larger parent company umbrella. Dave Hughes and Drew Dickinson continue to lead Rugby.

 
 

US LBM Holdings, Inc. (“US LBM”)

US LBM Holdings is the third-largest national lumberyard in the U.S., with 193 locations across 24 states and 7,000+ employees. US LBM was founded in 2009 when BIP principals partnered with pro dealer industry veteran L.T. Gibson and co-sponsor Black Eagle Partners to support L.T. in pursuing his entrepreneurial vision, beginning with the management buyout of four divisions of his employer, Stock Building Supply.

Through an investment thesis focused on: (a) acquiring local market-leading independent pro dealers focused primarily on the custom builder, regional production builder, and retail customer segments, and (b) utilizing a highly autonomous operating model that maintained operating subsidiaries’ local brands, leadership, and relationships, US LBM grew sales from $150 million to over $3.0 billion from 2008 to 2018, becoming one of the fastest-growing national pro dealer organizations in LBM history.

BIP principals formed the initial US LBM investment thesis and founding management team, sourced numerous early acquisitions, and provided strategic guidance to US LBM in a minority equity sponsor role, while reinvesting through several rounds including a recapitalization with Kelso & Company in 2015. In 2017, US LBM filed an S-1 registration statement for an initial public offering.

 
 

Kodiak Building Partners (“Kodiak”)

Kodiak Building Partners is a national one-step building products distribution holding company focused on four segments: (1) lumberyards/pro dealers, (2) drywall dealers, (3) kitchen, bath & appliance dealers, and (4) rebar & structural steel fabrication and service centers. Kodiak serves general contractors, homebuilders, sub-contractors, remodelers, and consumers through its 53 locations in Arizona, Delaware, Colorado, Florida, Maryland, Massachusetts, Michigan, and Texas.

BIP principals first invested in Kodiak in 2013, in a partnership born from longtime relationships with pro dealer veterans Paul Hylbert and Steve Swinney. Paul previously ran ProBuild Holdings, Lanoga Corporation, and PrimeSource Building Products, three renowned building products distribution businesses. Steve previously led the corporate finance team at ProBuild. In 2010, Paul and Steve left ProBuild and established Kodiak to realize their entrepreneurial vision. In 2013, BIP became a significant minority investor in Kodiak and its first institutional private equity capital, helping Kodiak to effect six acquisitions and grow revenue from $126 million to over $500 million. In December 2017, BIP exited its Kodiak investment when Court Square Capital Partners acquired a majority interest in Kodiak in partnership with Management.

 
 

United Cabinet Holdings (“UCH”)

United Cabinet Holdings is a residential kitchen & bath cabinetry manufacturer holding company with operations in the Southeastern U.S. BIP formed UCH in February 2012, after developing an investment thesis in partnership with industry veterans Terry Dickey, Michael Arnaud, and Butch Reimer to pursue acquisition opportunities within the cabinet space.

 

With BIP’s financial and strategic support, UCH made two acquisitions of businesses hard hit by the housing downturn, Touchstone Fine Cabinetry and Tru Cabinetry. UCH overhauled both acquired companies’ leadership, marketing strategy, product lines, brands, plant operations, and distribution channels, while pursuing aggressive growth strategies. In early 2018, UCH sold the assets of Touchstone to a strategic buyer, Precision Cabinets. UCH continues to own fast-growing Tru Cabinetry in partnership with Butch Reimer and Allen Godziebieski.

 
 

Building Industry Advisors, LLC (“BIA”)

Building Industry Advisors provides M&A, capital, and strategic advisory services for middle-market building products and construction service companies. Given the proprietary nature of BIP’s deal flow, we often come across companies interested in growth capital or a liquidity event which are not a fit for BIP’s current investment platforms, with business owners seeking guidance during a critical life cycle phase. BIP partnered with successful longtime building products investment banker Michael Collins to build an advisory business while leveraging BIP’s broad network of industry relationships. BIA combines extensive knowledge and contacts in the building products industry with substantial transaction experience advising independent business owners regarding sales, recapitalizations, equity and debt financing transactions, and strategic consulting engagements.