Platinum Equity
Mergers. Acquisitions. Operations.

Mergers. Acquisitions. Operations.

Platinum Equity to Sell NILCO to U.S. LUMBER

Press Release · September 17, 2017

Successful Investment Highlights Strength of Platinum Equity’s Value Proposition in the Lower Middle Market

LOS ANGELES (Sept. 17, 2017) –Platinum Equity today announced it has signed a definitive agreement to sell NILCO to U.S. LUMBER GROUP.  Financial terms of the transaction were not disclosed. The sale is expected to close during the fourth quarter, subject to regulatory approval and certain closing conditions.

NILCO, headquartered in Hartville, Ohio, is a wholesale distributor of specialty building materials and industrial products in the Midwestern and Northeastern United States. U.S. LUMBER, based in Atlanta, is a distributor of specialty building products in the Southern and Eastern United States. 

“Since acquiring the business, Platinum Equity has partnered with the NILCO management team to drive a combination of operational improvements and growth strategies that increased revenue and profitability,” said Platinum Equity Partner Bob Wymbs.  “The business is a perfect complement to US LUMBER and is well positioned for continued success.”

During Platinum Equity’s ownership, NILCO strengthened its leadership team underneath CEO Jim Smith, installed new financial controls and other best practices throughout the organization, expanded the company’s footprint and launched key new products.  As a result, year over year NILCO’s revenue is up approximately 9% and EBITDA is up approximately 20% on a trailing twelve month basis.

“Partnering with Platinum helped transform our business,” said Mr. Smith. “They invested in our growth and delivered the tools we needed to operate more effectively. Platinum’s operational expertise and mentorship allowed us to transition from a family-owned business into a highly efficient enterprise that is well prepared to take the next step.”

Mr. Wymbs added that the NILCO investment reflects Platinum Equity’s commitment to the lower middle market as the firm continues to grow. Platinum Equity is today investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund.

“We are very active in the lower middle market and the NILCO investment is another great example of the firm continuing to create value in that space,” said Mr. Wymbs.


About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity (www.platinumequity.com) is a global investment firm with $13 billion of assets under management and a portfolio of approximately 30 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 22 years Platinum Equity has completed more than 200 acquisitions.

About NILCO
NILCO, based in Hartville, Ohio, was founded in 1909 as a supplier of wood based products to manufacturers in the Midwest. In the late 1990s NILCO added building materials product lines and became an important supplier to local lumber and building supply dealers serving the residential construction market. NILCO has a reputation for premier customer service that is rooted in a long standing philosophy to “Kill the Customer with Kindness.” Today, NILCO has annual revenue of approximately $200 million and serves more than 2,000 customers through 12 distribution centers in Indiana, Kentucky, Ohio, Pennsylvania, West Virginia and New York. More information is available on NILCO’s website at www.nilco.net .

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