Volume 12, Issue 9 - November/December 2011

Distributor News

BlackEagle Partners Aquires Lyman Lumber Company

BlackEagle Partners has acquired the Midwest operations of Lyman Lumber Company, including its Chanhassen location, Automated Building Components, Carpentry Contractors Corp., and Lyman Lumber of Wisconsin. The transaction was effective October 28, 2011. BlackEagle Partners is the owner of US LBM Holdings, a collection of eight building products distributors serving the Midwest, Northeast, and Mid-Atlantic in nine states with more than 40 locations.

Lyman, headquartered in Excelsior, Minn., serves the Minneapolis-St. Paul metropolitan area as well as Eau Claire, Wis. It employs more than 500 people with annual sales exceeding $100 million. Dale Carlson, vice president of operations, will remain with the business in his new role as president.

“The breadth of products and quality of services offered by all of our business lines at Lyman will only improve through our partnership with US LBM,” Carlson says.

“The acquisition of Lyman furthers our commitment to US LBM as a platform in the building supply industry and represents a perfect example of BlackEagle’s strategy of increasing value through acquisition,” says Bryan Tolles, vice president of BlackEagle.

In related news, John H. Myers & Son is the latest addition to the US LBM family of companies. Myers, headquartered in York, Pa., operates six building products stores throughout south central Pennsylvania and northern Maryland with showrooms featuring various products including doors and windows. In 2010, the company says its sales exceeded $55 million.

USG Corp. to Close Eight L&W Locations
USG Corp., parent company of L&W Supply Corp., filed a report with the Securities and Exchange Commission on August 25 stating that it will close eight distribution branches and its Nevada custom door and frames business, “to adapt to market conditions.”

The company says the closures will record charges of approximately $7-$8 million in the current and future fiscal quarters related to these closures. This includes approximately $5-$6 million related to equipment and distribution branch lease terminations, approximately $1 million for termination benefits and approximately $1 million for associated costs, including inventory write-offs. The company estimates that it will incur cash expenditures of approximately $6-$7 million in the current and future fiscal quarters in connection with the closures, according to the filing.

True Home Value Expands by Opening Two New Stores in West Virginia
True Home Value (THV) Stores, a home improvement remodeler, has announced plans for expansion into two new markets in West Virginia—Huntington and Charleston. The stores will service roughly a 50-mile radius surrounding these two new showrooms.

Don Shelby, head of THV retail store development, says that the new locations were added in response to rising consumer demand in the area.

The Gores Group Acquires Remaining Interest in Stock Building Supply
The Gores Group, a private equity firm, announced that it has furthered its commitment to Stock Building Supply Holdings LLC by acquiring Wolseley plc’s remaining minority interest in Stock. The Gores Group acquired a controlling interest in Stock, on May 5, 2009. Terms of the transaction were not disclosed.

“We have high expectations for Stock, and this transaction solidifies our position in the company,” said Ryan Wald, managing director of The Gores Group. “Stock is well-situated to weather the downturn and is capable of rapid growth as the market recovers. This additional investment will allow us to participate fully in the growth of Stock and the recovery of the housing market.”

“This additional investment by Gores is a sign of confidence in our associates and our strategy, and we look forward to working collaboratively with The Gores Group in the future,” added Jeff Rea, chief executive officer of Stock Building Supply.

Former ProBuild Execs Form New Company
Paul Hylbert, former chief executive officer of ProBuild, has formed Kodiak Building Partners, based in Denver, and says the company plans to invest in the building materials distribution industry.

“We believe the time is right to acquire assets in this space,” says Hylbert. “While construction activity in general remains very weak, we believe that this business will recover and are looking to partner with strong management teams to participate in the upturn.”

Joining Hylbert is Steve Swinney who will act as president and chief operating officer, as well as Kyle Barker, Brian Cleveringa and Eric Miller who will be managing directors. All of these individuals also worked previously at ProBuild, as did Hylbert.

“As we did with our recapitalization of Barton Supply in July of this year, we want to build Kodiak by partnering with the right management teams, establishing the appropriate capital structure, and then supporting the growth of companies over the long term,” said Swinney.

Kodiak Building Partners was formed to invest in building products companies serving new residential, repair and remodeling, and commercial construction markets across the United States. “Recognizing that this industry is very local in nature, Kodiak and its investor partners will work with and support management on a market-by-market basis to build and grow businesses in the $10 million to $100 million sales range,” according to the company press release.

WinWinWindows.com has begun operations in Abilene, Texas, and will serve the West-Central Texas community. The company will provide all types of replacement windows including metal and wooden windows, but will primarily focus on providing energy-efficient vinyl replacement windows as well as those for new construction.


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