BPGC Management LP Secures Major Stake in PB Materials for Growth

BPGC Management LP Secures Major Stake in PB Materials

In an important development in the construction materials sector, BPGC Management LP has announced the acquisition of a controlling majority stake in PB Materials Holdings, Inc. (PBM). This strategic move marks a significant investment aimed at enhancing growth in the competitive landscape of construction aggregates and ready-mix concrete production. The acquisition was finalized on February 6, 2025, under terms that remain undisclosed.

Overview of PB Materials

PB Materials is recognized as a leading producer of construction aggregates and ready-mix concrete, particularly in the Permian Basin, which spans across West Texas and southeast New Mexico. The company operates 14 different mine sites, boasting nearly 300 million tons of proven aggregate reserves. Its extensive product line includes over 20 different grades of aggregate that serve various sectors including construction, energy, and infrastructure projects.

Additionally, PBM oversees 12 ready-mix production sites that cater to a wide range of customers. The company’s logistics capabilities are formidable, with a fleet comprising 120 mixer trucks that deliver more than 750,000 cubic yards of concrete annually.

Comments from BPGC Management

Stephen Toy, Co-Founder and Managing Partner at BPGC, expressed enthusiasm regarding the partnership with PBM's management team, stating that the acquisition would bolster the company’s growth trajectory in West Texas. He emphasized the need for additional capital resources that will allow PBM to leverage the burgeoning market opportunities prevailing in the region.

Nick Peterson, Principal at BPGC, added further insights about the strategic importance of PBM in fulfilling industrial and infrastructure demands across West Texas. He noted the company’s historical performance in both organic and inorganic growth sectors as a significant asset in their investment strategy.

Funding and Legal Support

This transaction received critical financial backing from Fortress Investment Group and Hillcrest Bank, part of NBH Bank, which offered committed debt financing. Legal counsel to BPGC was provided by Kirkland Ellis LLP and White Case LLP, while Houlihan Lokey served as the capital markets advisor for the deal.

About BPGC Management LP

BPGC Management LP is an independent private equity firm focused on opportunistic buyouts and special situation transactions in the industrials, materials, and chemicals domains. The firm’s founding members, including Stephen Toy and Nadim Qureshi, carry extensive experience from their tenure in various leadership roles at Invesco Private Capital and WL Ross & Co.

With its headquarters in New York City, BPGC aims to further enhance its portfolio through strategic investments that align with market dynamics and growth potential.

About LSV Advisors

Founded in 2005, LSV Advisors, LLC is a New York-based firm involved in special situations and secondary management. It manages approximately $2.8 billion in assets for a wide array of clients including institutional investors and family offices globally. LSV offers various restructuring and liquidity solutions, focusing on alternative investment funds.

Conclusion

The acquisition of PB Materials signifies BPGC Management’s commitment to strengthening its investments in crucial market segments. With an impending pipeline of infrastructure projects and growing demand for construction materials, PBM is positioned to play a pivotal role in meeting these needs while continuing to drive forward in West Texas and beyond.