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 during the past decade. In turn, through supporting operators’ entrepreneurial visions, 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 conservative macro and business risk-reward assessment, BIP’s principals have generated weighted-average gross equity returns (ROI) for their limited partner investors of over 5.0x invested capital and over 35% IRR in building industry investments since BIP’s formation in 2008. Through their exceptional performance and financial interest alignment, BIP 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 3rd 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 private equity firm and co-sponsor, Black Eagle Partners, supporting L.T. in realizing his entrepreneurial vision and acquiring four divisions of his prior employer, Stock Building Supply.

Through an investment thesis focused on: (a) the custom builder, regional production builder and retail customer segments, (b) acquiring local market-leading independent pro dealers and (c) maintaining a highly autonomous operating model that maintained operating subsidiaries’ local brands, leadership and relationships, US LBM grew sales from $150 million to over $2.5 billion from 2008 to 2016, representing 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, helped source numerous 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 veteran executives Paul Hylbert and Steve Swinney. Paul and Steve had previously operated large building products distributors and established Kodiak to build their own business. In 2013, BIP became a significant minority investor in Kodiak and represented the business’ first institutional private equity capital, helping Kodiak to affect six acquisitions and grow from $126 million in revenue to over $500 million in revenue. In December 2017, BIP exited its Kodiak investment, as Court Square Capital Partners acquired a majority interest in Kodiak in partnership with Management. BIP is thankful to have been a part of Kodiak’s outstanding growth and success during its investment period. 

 
 

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 that aren’t 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 of and contacts in the building products industry with substantial transaction experience in advising independent business owners regarding sale, recapitalization, equity and debt financing transactions and strategic consulting engagements.