NEW YORK (

TheStreet

) -- A consortium of buyers led by a

Goldman Sachs

(GS) - Get Report

private equity fund and

P2 Capital Partners

is buying industrial products services company

Interline Brands

(IBI)

for $25.50 a share, or $1.1 billion, when including the company's debt.

The deal comes at a 42% premium to Interline Brands Friday close of $17.94 and represents the Jacksonville, Fla.-based seller of plumbing, hardware and air conditioning products highest share price since 2007. As part of the deal, Goldman Sachs Capital Partners will take an equity stake in Interline Brands, while its banking unit and

Bank of America

(BAC) - Get Report

will provide debt financing.

In addition to the private equity funds participating in the buyout, Interline Brands said some members of its management team will invest in the deal. According to

Nasdaq

compilations of

Securities and Exchange Commission

filings, Interline CEO Michael Grebe is the largest insider with over 35,000 Interline shares, which represents less than 1% of the company's outstanding stock. Interline's largest institutional holders include FMR, Columbia Wanger Asset Management and P2 Capital Partners, all with over 7% share stakes.

Interline Brands said in a release that its board had approved the private equity offer, but that it will solicit third party bids through June 28. If no offer emerges, the deal should close by the third quarter.

Interline Brands rose over 39% to $25 in Tuesday pre-market trading, slightly below Goldman and P2's offer. Prior to Tuesday's buyout, Interline Brands had risen over 15% in 2012, but its shares were off over 2% in the past 12 months.

The company, which maintained profitability through the recession, saw its revenue grow to a post-crisis high of $1.25 billion in 2011, however, its profit of $37.7 million was below 2008 levels over $40 million.

"This agreement provides excellent value to shareholders. This is also an exciting new chapter for Interline, one that we believe will bring broad benefits to all of our stakeholders," said Interline CEO Grebe.

Barclays

(BCS) - Get Report

is acting as financial advisor to Interline and the company said it has provided a fairness opinion in relation to the deal.

For more on recent buyout efforts, see why Sycamore is

walking away

from a $3.05 buyout offer for

Talbots

(TLB)

. See why the

Gores Group

is

slamming the brakes

on a

Pep Boys

(PBY) - Get Report

buyout for more on troubled private equity bids.

--

Written by Antoine Gara in New York.