BPGC Management LP acquires controlling stake in PB Materials Holdings to expand industrial footprint

BPGC Management LP, a New York-based private equity firm, has announced the acquisition of a controlling stake in PB Materials Holdings, a leading construction aggregates producer in the Permian Basin. The deal, finalised in partnership with LSV Advisors, LLC, marks a significant development in the construction materials sector, underscoring the growing demand for industrial and infrastructure projects in West Texas and southeast New Mexico. Although the transaction’s financial terms remain undisclosed, the acquisition signals BPGC Management LP’s strategic focus on expanding its influence within the global industrials and materials landscape.

The acquisition involves the purchase of shares from funds managed by WL Ross & Co. LLC, with investment vehicles managed by affiliates of LSV Advisors acting as lead investors. This partnership aims to strengthen PB Materials Holdings’ operational capacity, positioning the company to capitalise on the robust construction activities driven by energy projects and infrastructure developments in the region.

PB Materials Holdings: A key player in the construction aggregates market

Founded to meet the growing demand for high-quality construction materials in the Permian Basin, PB Materials Holdings has evolved into one of the region’s most prominent suppliers of sand, gravel, and ready-mix concrete. The company operates 14 mine sites with nearly 300 million tons of proven aggregate reserves, producing over 20 grades of construction aggregates. These materials are critical for a variety of sectors, including commercial construction, energy infrastructure, and large-scale civil projects.

In addition to its extensive aggregate operations, PB Materials Holdings manages 12 ready-mix concrete production sites. With a fleet of 120 mixer trucks, the company delivers more than 750,000 cubic yards of concrete annually, serving clients across West Texas and southeast New Mexico. This operational scale has solidified PB Materials Holdings’ reputation as a reliable supplier, capable of supporting both small-scale construction initiatives and massive infrastructure projects.

BPGC Management LP’s strategic vision for PB Materials Holdings

Commenting on the acquisition, Stephen Toy, Co-Founder and Managing Partner of BPGC Management LP, expressed optimism about the company’s future growth trajectory. According to Toy, the investment will provide PB Materials Holdings with additional capital resources to leverage the favourable market dynamics currently shaping West Texas. This region, known for its booming energy sector and rapid industrial development, presents significant opportunities for construction materials suppliers to expand their operations.

Toy highlighted that the acquisition aligns with BPGC Management LP’s broader strategy of pursuing opportunistic buyouts and special situations transactions within the global industrials, materials, and chemicals sectors. The firm’s leadership, with a history rooted in successful investments at Invesco Private Capital and WL Ross & Co., brings deep industry expertise to the table, positioning PB Materials Holdings for sustained growth under its new ownership structure.

Nick Peterson, Principal at BPGC Management LP, reinforced this strategic vision, noting that PB Materials Holdings is well-positioned to support the significant pipeline of industrial and infrastructure projects currently underway in West Texas. He emphasised the company’s strong track record of both organic growth, through expanding its operations and product offerings, and inorganic growth via strategic acquisitions. This dual growth strategy will be critical as PB Materials Holdings seeks to meet the increasing demand for construction aggregates in the region.

Financing the acquisition: Key stakeholders and advisors

The acquisition was backed by committed debt financing from Fortress Investment Group and Hillcrest Bank, a division of NBH Bank. This financial support underscores the confidence that institutional investors have in PB Materials Holdings’ long-term prospects, particularly given the strong demand for construction materials driven by energy infrastructure developments in the Permian Basin.

Legal counsel for BPGC Management LP was provided by Kirkland & Ellis LLP and White & Case LLP, both of which played pivotal roles in structuring the transaction. Additionally, Houlihan Lokey served as the capital markets advisor, offering strategic guidance throughout the acquisition process. The involvement of these prominent advisory firms reflects the complexity and scale of the deal, which is expected to have a lasting impact on the construction materials sector in the region.

LSV Advisors’ role in the strategic partnership

As the lead investor partnering with BPGC Management LP, LSV Advisors, LLC brings extensive experience in managing special situations and secondaries investments. Founded in 2005 and headquartered in New York, LSV Advisors manages approximately $2.8 billion in assets and commitments on behalf of institutional investors, family offices, and other clients worldwide.

LSV Advisors specialises in providing restructuring and liquidity solutions across a wide range of alternative investment funds. Its partnership with BPGC Management LP in the PB Materials Holdings acquisition highlights the firm’s strategic focus on identifying high-potential opportunities within the industrial and materials sectors. This collaboration is expected to enhance PB Materials Holdings’ operational capabilities, enabling the company to navigate the evolving demands of the construction materials market effectively.

The impact of the acquisition on West Texas infrastructure

The acquisition of PB Materials Holdings comes at a pivotal time for West Texas, where infrastructure projects are expanding rapidly due to increased energy production and population growth. The region’s booming economy has created a surge in demand for construction aggregates, with projects ranging from highways and bridges to energy facilities and commercial developments.

Under the leadership of BPGC Management LP and in partnership with LSV Advisors, PB Materials Holdings is expected to play an even more significant role in meeting this demand. The company’s expanded capital base will support investments in new technologies, operational efficiencies, and potential acquisitions, all of which are designed to enhance its competitive position in the market.

Furthermore, the acquisition reflects broader trends within the private equity landscape, where firms are increasingly targeting infrastructure-related assets to capitalise on long-term growth opportunities. As global demand for construction materials continues to rise, PB Materials Holdings’ strategic positioning in the Permian Basin offers a strong platform for future growth and innovation.