Strategy

Our strategy is simple at its core. Partner with a great management team to build an operating company into an industry leader over a period of time measured in decades, not years. Do so by combining operational excellence with an acquisition-led growth program.

Attributes Sought

Success in a long-term build-up strategy is enhanced when the market sector in which the company operates possess certain core attributes. In general, these attributes include: a long-term positive demand growth outlook; a robust profit margin structure; and an attractive return on capital that can be sustained over time. These attributes, resident in a market space that is fragmented, and in which successive acquisitions can be undertaken, underpin our strategy.

Leverage

We believe financial leverage should be used judiciously and held to prudently low levels as a means of enhancing return on equity while maintaining financial and operational flexibility in all environments. This approach ensures management the ability to focus on growing the business rather than managing the balance sheet, while providing the necessary capital to invest through all market cycles.

Specialty Chemical & Ingredients Distribution

LBB has committed to the specialty chemical and ingredient distribution industry as the sector in which it is pursuing its investment strategy. The specialty chemical and ingredients distribution industry is an excellent fit with LBB's strategy. As a North American industry sector which exceeds $32 billion in size, grows faster than GDP and is highly fragmented, significant opportunities for organic growth and complementary acquisitions exist.

Charkit Chemical Company

On July 31, 2017, LBB activated this strategy by acquiring a majority interest in Charkit Chemical Company LLC ("Charkit"). Charkit is a leading specialty chemical and ingredients distribution company headquartered in Norwalk, CT and celebrated its 35th year of operations in 2017. See News for the related press release.

AIC, Inc.

On January 3, 2018, LBB acquired a majority interest in American International Chemical LLC ("AIC"). AIC is a leading specialty chemical and ingredients distribution company headquartered in Framingham, MA and celebrated its 46th year of operations in 2017. See News for the related press release.