Houlihan Lokey Advises BPGC
Houlihan Lokey is pleased to announce that BPGC Management LP (BPGC), an independent deal-by-deal financial sponsor, has acquired PB Materials Holdings (PBM). The transaction closed on December 31, 2024. Houlihan Lokey’s Direct Placements team served as the exclusive capital markets advisor to BPGC.
Founded in 2020, BPGC is an independent sponsor dedicated to opportunistic buyouts and special situation transactions in the global industrials, materials, and chemicals sectors. BPGC’s founding partners previously served in leadership roles at WL Ross & Co. and share a deep legacy of successfully investing across multiple geographies for more than 20 years. Since 2000, BPGC’s senior professionals have led investments amounting to more than $15 billion in aggregate value across 14 countries in North America, Europe, and Asia. Today, BPGC manages over $1 billion in assets and is headquartered in New York City.
Tracing its origins back to the 1940s, PBM, located in Lubbock and Odessa, Texas, is a leading regional producer of sand and gravel, limestone aggregates, and ready-mix concrete in the Permian Basin, one of the United States’ most prominent oil-producing fields. PBM’s strength stems from its decades-long market presence and unique location within the Permian Basin, where PBM recently discovered sizeable frac sand reserves for commercial use by oil and gas drillers. With a fleet of more than 100 ready-mix trucks, PBM is also a ready-mix concrete leader in its core markets, with opportunities identified by BPGC to further expand its market share and geographic coverage area.
BPGC engaged Houlihan Lokey’s Direct Placements team to raise equity capital from new investors to form a deal-specific special purpose vehicle (SPV) that acquired PBM. In this structure, BPGC serves as the General Partner to the SPV. Houlihan Lokey generated broad interest from a range of institutional Limited Partners, fostering likely support for future BPGC transactions. Ultimately, LSV Advisors (LSV), based in New York, was selected as the lead equity investor.
LSV, alongside other investors, provided both upfront equity and additional unfunded committed capital earmarked for future drawdown to support strategic capital expenditures, including the potential acquisition of an aggregates mining property currently leased by PBM. PBM was formed in 2013 via the merger of three separate businesses, and BPGC believes the company is now uniquely positioned to act as a regional consolidator.
BPGC is a repeat client of Houlihan Lokey’s Direct Placements team. In 2021, the team served as capital markets advisor for BPGC’s carve-out of DuPont’s Clean Technologies business from DuPont Speciality Products USA, a global leader in advanced chemical catalyst and process technologies.*
This transaction is one of many examples of the Direct Placements team’s ability to generate repeat business from a diverse client base of institutional deal-by-deal independent sponsors, supporting them across a range of sectors, geographies, and deal structures. It also underscores Houlihan Lokey’s capabilities in navigating complex heavy industrials assets while leveraging a deep and diverse network of equity investors to achieve its client’s goals.
* Selected transactions were executed by Houlihan Lokey professionals while at other firms acquired by Houlihan Lokey or by professionals from a Houlihan Lokey joint venture company.
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