Specialty Building Products Owner Said to Mull $1.1 Billion Sale

(Bloomberg) -- Buyout firm Madison Dearborn Partners is considering a sale of Specialty Building Products that could value the business at about $1.1 billion, including debt, according to people familiar with the matter.

The Chicago-based private equity firm is working with an adviser on an auction process for the business, said the people, who asked not to be identified because they weren’t authorized to speak publicly. Specialty, based in Duluth, Georgia, is expected to attract interest from peers and other private equity firms, the people said.

A spokesperson for Madison Dearborn declined to comment. A representative for Specialty didn’t immediately respond to requests for comment.

A sale of Specialty would be the latest in a wave of deals in the building products space as sellers capitalize on consumers’ increased interest in home improvements during the Covid-19 pandemic.

Lowe’s Cos. had considered a takeover of HD Supply Holdings Inc., while Firestone Building Products and Bilfinger SE are both currently exploring sales, people familiar with those matters have said. Lowe’s said in a statement Monday that it wasn’t in talks with HD Supply and didn’t have plans to pursue a transaction.

Madison Dearborn agreed to acquire Specialty in 2017 for terms that weren’t disclosed.

Specialty’s brands include U.S. Lumber, Alexandria Moulding and Midwest Lumber. The company provides wood and wood composites for home builders, general contractors and individual consumers, according to its website.

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