BlackEagle Partners Sponsors US LBM Holdings, LLC

Bloomfield Hills, Michigan – November 3, 2009 – BlackEagle Partners, LLC, a private equity firm focused on turnarounds and special situations, and Building Industry Partners, LLC, a private equity firm focused on the U.S. building products industry, sponsored a newly formed entity, US LBM Holdings, LLC (“US LBM” or the “Company”), in partnership with L.T. Gibson, to acquire three regional operations from Stock Building Supply, LLC, the second largest lumber and building materials distributor in the U.S. The three markets include Wisconsin, Central New York and Connecticut, all longstanding, previously independent businesses with #1 or #2 market share supported by strong local management. US LBM will operate as a holding company, re-establishing the acquired operations as local autonomous businesses under their former or independent trade names, Wisconsin Building Supply, Bellevue Builders Supply and East Haven Builders Supply, respectively.

In aggregate, US LBM and its subsidiaries will be comprised of 13 locations and more than 500 associates servicing the professional building market with a primary focus on customers that require specialized services, such as custom homebuilders, professional remodelers as well as multifamily and commercial contractors. According to data published by ProSales Online, US LBM will the 15th largest lumber and building materials distributor in the U.S. based on 2008 net sales. The Company will serve as a platform to make further investments and acquisitions in the pro dealer space, often in partnership with current ownership and management, that enables businesses to operate as autonomous local divisions with the capital and other resources of a much larger national organization.

Founded in 1954 as the original Stock Lumber, the newly coined Wisconsin Building Supply (“Wisconsin”) is headquartered in Green Bay, Wisconsin. Wisconsin operates in seven locations (Green Bay, Appleton, La Crosse, Windsor, Sussex, Plover and Marinette). Currently, the company employs more than 250 associates led by the President of Wisconsin, Bill Imig.

Founded in 1960, East Haven Builders Supply (“East Haven”) is headquartered in East Haven, Connecticut. East Haven operates in two locations (East Haven and Newtown). Currently, the company employs more than 100 associates led by the former owner and President of East Haven, Antonio Rossano. Mr. Rossano owned East Haven for the 20 years prior to the acquisition by Stock.

Founded in 1937, Bellevue Builders Supply (“Bellevue”) is headquartered in Schenectady, New York. Bellevue operates in four locations (two in Schenectady, Richmondville and Sidney). Currently, the company employs more than 160 associates led by the President of Bellevue, Greg Gaskell.

“We are excited to partner with L.T. and his team of industry veterans in the acquisition of three leading building product distributors,” said Jason Runco, Partner of BlackEagle. “By focusing on smaller markets, the Company has a more diverse customer base with less competition serving both new residential builders as well as professional remodelers,” Mr. Runco added. Harry Watson, Partner of BlackEagle, commented, “US LBM will serve as a platform in the industry as we seek to acquire complementary businesses to expand the Company’s geography and product breadth.”

Commenting on the transaction, L.T. Gibson, US LBM’s President and CEO, offered, “We found a great partner with BlackEagle. They have repeatedly shown a commitment to the success of our business in addition to providing the strategic resources that adds value to our organization in this difficult environment.” Mr. Gibson continued, “Operating as an independent company again allows us many of the freedoms to improve services to our customers. We aren’t distracted by waiting for a large organization to move forward together. A customer can walk in and talk to the people that make the decisions. We feel that’s important.”

Matt Ogden, Managing Principal of Building Industry Partners, said, “US LBM will continue to look for outstanding private pro dealer businesses and management teams that are seeking an equity capital partner to bolster working capital, support organic and acquisition-related growth initiatives and be in position to prosper coming out of the current U.S. residential construction downturn.”

Michael DuBay of Honigman Miller Schwartz and Cohn, LLP represented BlackEagle in the acquisition and Alvarez & Marsal Transaction Advisory Group provided financial and accounting diligence.

About BlackEagle Partners
BlackEagle Partners LLC, with offices in New York, New York and Bloomfield Hills, Michigan, is an operations focused, middle market private equity firm that seeks to acquire underperforming and distressed businesses, non-core subsidiaries, and companies in out-of-favor industries. BlackEagle seeks businesses with an enterprise value below $200 million. For more information, please visit www.blackeaglepartners.com

About Building Industry Partners
Building Industry Partners, LLC, with offices in Dallas, New York and Los Angeles, is a private equity investment and transaction advisory firm specializing in the U.S. middle market building products and construction services industry. BIP provides equity capital to management teams and private companies with $25 to $500 million in sales for purposes of growing their businesses organically or through buy-and-build acquisition strategies. For more information, please visit http://building-ip.com

Contact
Kimberly Lawrence klawrence@blackeaglepartners.com 313-647-5360