BlackEagle Partners and Building Industry Partners Form US LBM Holdings, LLC to Acquire Three Stock Building Supply Regional Operations

US LBM Holdings (headquartered in Green Bay, WI) will be platform to make
further investments and acquisitions in lumber and building materials pro dealer
segment
BLOOMFIELD HILLS, Mich.--(Business Wire)--
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.

"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 national 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 invest in or 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. 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

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 www.building-ip.com

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BlackEagle Partners
Kimberly Lawrence
klawrence@blackeaglepartners.com
313-647-5360

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