US LBM Holdings has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million. The company intends to list its shares on the New York Stock Exchange under the symbol LBM.
The underwriters for the offering are Barclays, Credit Suisse, RBC Capital Markets, Citigroup, SunTrust Robinson Humphrey, Wells Fargo, Baird, Stephens and William Blair.
This is one of the leading and fastest growing distributors of specialty building materials in the United States. Management believes its differentiated operating model, technology capabilities and broad offering of specialty products enable it to distinguish the business from both local and national competitors within the industry.
The company serves as a critical link in the building materials supply chain, supplying more than 60,000 stock keeping units (SKUs) for custom homebuilders and specialty contractors. Its comprehensive portfolio of building materials includes specialty products such as windows, doors, millwork, roofing, siding, cabinetry and wallboard, as well as wood products, with specialty products comprising approximately 74% of the overall mix in 2017.
The company detailed its finances in the filing:
In fiscal year 2017, we generated $3.1 billion of net sales, $10.9 million of net loss and $220.9 million of Adjusted EBITDA. During the last six years, we have delivered significant above market sales growth, growing comparable location sales on average 586 basis points faster than our addressable market. In addition, our significant number of acquisitions coupled with our differentiated operating model and focus on operational excellence have resulted in growth in total net sales and Adjusted EBITDA at a compound annual growth rate, or CAGR, of 42.8% and 52.6%, respectively.
The company intends to use the net proceeds from this offering to purchase LLC interests from US LBM LLC, as well as for repaying its indebtedness. The remainder of the proceeds will be used for working capital and general corporate purposes.