US LBM has agreed to acquire American Construction Source from Angeles Equity Partners LLC and Clearlake Capital Group LP. ACS is a lumber and building materials distribution platform serving custom home builders, repair and remodel contractors, and do-it-yourself homeowners across the United States.
Tim Meyer, Angeles co-founder and managing partner, and Sam Heischuber, principal at Angeles, said, “We are exceptionally proud of James Drexinger and the entire ACS team for their impressive execution of the Angeles and Clearlake investment thesis over the last three years. Jim has been a valuable advisor to our firm since its inception and we’re delighted to have worked with him again. We believe the ACS platform advantages built on a foundation of local customer relationships and personalized service position the Company well for continued growth. We have significant experience in this sector, and committed substantial operational and M&A resources to realize our investment thesis in ACS. The operational results we were able to achieve are, in our view, a testament to our value creation model.”
“The strategic transformation we have executed at ACS in partnership with James Drexinger and Angeles is an exciting success story for our O.P.S playbook,” commented José E. Feliciano, co-founder and managing partner at Clearlake, and James Pade, partner and managing director at Clearlake. “Several years ago, Angeles and Clearlake identified the LBM space as a highly fragmented market ripe for disciplined consolidation with a focus on higher value niches. We believed we could build a differentiated platform that would benefit from a commercial strategy geared towards custom home builders, as well as an emphasis on key growth markets, and a focus on the residential renovation market. US LBM is a perfect home for ACS, and we look forward to the Company’s future successes.”
James Drexinger, CEO of ACS, commented, “ACS joining US LBM is an outstanding outcome based on the alignment of our shared strategy to preserve longstanding local lumberyard brands and operations while delivering a great customer experience. We are thrilled to have had the opportunity to partner with Angeles and Clearlake, and are grateful to our customers, suppliers, leadership team, salespeople, and associates for their support. Together we have built a significant industry platform while simultaneously honoring the 100+ year heritage of the local brands and family legacies we have acquired. None of this would have been possible without the value-added sponsorship of Angeles and Clearlake, whose deep building products, distribution, and operating expertise accelerated our growth trajectory.”
Moelis & Co. LLC and Jefferies LLC served as financial advisors to ACS on the transaction, and Simpson Thacher & Bartlett LLP and Sidley Austin LLP served as legal advisors to ACS.