A fund managed by BPGC Management LP announced that it has acquired a controlling, substantial majority stake in PB Materials Holdings Inc. (PBM), a leading producer of construction aggregates and ready-mix concrete in the Permian Basin region, from certain funds managed by WL Ross & Co. LLC.
Investment vehicles managed by affiliates of LSV Advisors LLC, a New York-based special situations secondaries manager, served as lead investor partnering with BPGC in the transaction. Terms of the transaction were not disclosed.
PBM is one of the largest producers of sand and gravel, construction aggregates and ready-mix concrete in West Texas and southeast New Mexico. It operates 14 mine sites with nearly 300 million tons of proven aggregate reserves producing over 20 grades of aggregate used in construction, energy and infrastructure.
Additionally, it operates 12 ready-mix production sites servicing its customers with a fleet of 120 mixer trucks supplying more than 750,000 cu. yd. of concrete annually.
Stephen Toy, co-founder and managing partner of BPGC, said, “We are pleased to partner with management of PBM to further grow its leading position in West Texas. This transaction provides the Company with additional capital resources to capitalize on the highly attractive market dynamics of the region.”
Nick Peterson, principal of BPGC added, “We believe that PBM will continue to be a critical supplier supporting the significant pipeline of industrial and infrastructure projects across West Texas. Management has a proven track record for both organic and inorganic growth.”
Fortress Investment Group and Hillcrest Bank, a division of NBH Bank, provided committed debt financing for the transaction. Kirkland & Ellis LLP and White & Case LLP acted as legal counsel to BPGC and Houlihan Lokey served as capital markets advisor.