Charter executives take controlling stake in PB Materials

Sources: BPGC Management LP, New York; CP staff

A BPGC Management (BPG) fund has acquired a substantial majority stake in Odessa, Texas-based PB Materials Holdings Inc. from certain funds managed by WL Ross & Co. LLC. PBM serves west Texas and southeast New Mexico accounts through 12 ready mixed plants with a 120-mixer truck fleet delivering more than 750,000 cubic yards annually, as well as 14 aggregate operations processing 20-plus coarse and fine grades used in construction, infrastructure and energy projects.

Investment vehicles managed by affiliates of LSV Advisors LLC, New York-based special situations secondaries manager, served as lead investor partnering with BPG in the transaction. “We are pleased to partner with management of PBM to further grow its leading position in west Texas,” says BPG Managing Partner Stephen Toy, who helped charter the producer in 2013 during a WL Ross & Co. tenure. “This transaction provides the company with additional resources to capitalize on highly attractive market dynamics.”

“We believe that PBM will continue to be a critical supplier supporting the significant pipeline of industrial and infrastructure projects across west Texas,” adds BPG Principal Nick Peterson. “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 BPG and Houlihan Lokey served as capital markets advisor.