Volume 13, Issue 1 - January/February 2012

Focus on Distribution
Distribution News


MJB Wood Group Expands Operations

MJB Wood Group Inc., of Irving, Texas, has expanded its distribution and sales locations by opening distribution branches in the St. Paul/Minneapolis area, Louisville, Ky., and Charlotte, N.C., to support its customer base of OEMs. Product offerings include panel, components and specialty products and will offer a quick ship program of stock items.

“We have had great success with our distribution facility in Elkhart, Ind., and want to duplicate this model to service accounts in the Midwest and Southeast,” says Jeff Messick, MJB’s vice president of sales. The company’s operation in Simsboro, La., which opened last November, caters to millwork shops in the South along with retail lumberyards in both full truckload and less than truckload shipments. Products include hardwood lumber, hardwood plywood, panel products and architectural mouldings.

MJB Tableros Y Maderas, MJB Wood Group’s Mexican subsidiary, is also expanding its Mexican operation with a new distribution facility in Merida, Mexico situated on the Yucatan Peninsula.

Former ProBuild Execs Form New Company
Paul Hylbert, former CEO 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. Kyle Barker, Brian Cleveringa and Eric Miller will be managing directors. All of these individuals had worked previously at ProBuild.

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.

Castle Windows to Expand in 2012
Castle Windows based in Mount Laurel, N.J., announced plans late last year to increase its staff by about 20 percent in early 2012. The company, which operates in New York, New Jersey, Pennsylvania, Delaware, Connecticut, Maryland, Massachusetts, Rhode Island, Virginia, North Carolina, South Carolina and New Hampshire, plans to widen its reach along more of the East Coast.

“We have already expanded operations and have the need for added marketing and customer service personnel,” says CEO Chris Cardillo. “We have also acquired the customer base from a large competitor of ours and so we need more employees to assure the same level of service.”

Cardillo says he expects to hire approximately 30 people, most of whom will be in south Jersey, with the rest spread throughout the New England and southern states.

The company has 175 employees and about $55 million in annual revenue. Cardillo says this could grow to 300 people, with annual revenue of $100 million in six years.

One Window Retailer Acquires Another
Clear Choice USA has acquired fellow window retailer Window Depot USA. Clear Choice president and CEO Ed Kalaher says the acquisition results in “one of the nation’s largest retailers of vinyl replacement windows.”

“By joining forces, both companies are expanding their national footprint; but more importantly, by combining staff efforts, dealer expertise and best business practices, both companies emerge stronger than ever before, and better equipped to offer homeowners an unbeatable combination of low prices and high-level service,” he says. “Best yet, with ever-increasing public visibility, these companies must continue to raise their level of service to the consumer to keep pace with some of the industry’s biggest brands.”

Kalaher adds that the transaction increases the company’s leverage with supply partners, “allowing us to pass on significant savings to our clients, but it expands our brand visibility and reinforces the fact that we must continue to constantly improve our levels of service and craftsmanship.”

Gores Group Acquires Interest in Stock
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 acquisition adds to the Gores Group’s controlling interest originally acquired 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,” says 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,” adds Jeff Rea, CEO of Stock Building Supply.

Door Com Distribution Named Quanex Distributor
Quanex Building Products Corp. selected Woodbridge, Ontario-based Door Com Distribution as the exclusive distributor for its Imperial Products there.

“Door Com was an ideal fit for us because of their exemplary reputation in the market and their dedication to supplying only high-value, high-quality door components,” says John Westfall, business development manager, door and window systems, Quanex Building Products. “With the imminent building code mandates for exterior doors in Canada, it’s a great time for us to enter this market with our Imperial Products solutions that are engineered to provide optimal water infiltration resistance and energy efficiency.”

Door Com has warehouses throughout Canada.

Parr Lumber to Open New Location
Parr Lumber has opened a new location in Marysville, Wash. The new store features a 20,200-square-foot warehouse on 4.5 acres. It houses 1,000 square feet of office space, 1,500 square feet of retail space and employs 22 full-time employees. The store is managed by Doug Nelson who has worked for Parr Lumber for nearly a decade, the last four of which managing Parr Lumber in Everett, Wash.

Deeper expansion into the Washington market has continued to be a priority for Parr Lumber, according to a company press release. The Marysville site will replace the Everett location, which opened in January 2008. The Marysville facility follows Parr’s recent expansion into Spokane in June 2010 and is the sixth Washington Parr Lumber location.

“We have some strong core customers in the area and we are excited about opening the new Marysville location...” says David Hamill, CEO, Parr Lumber.

Builders FirstSource Opens New Florida Operation to Replace West Palm Beach Location
Builders FirstSource Inc., based in Dallas, opened a new distribution facility in Riviera Beach, Fla. The new facility replaces the West Palm Beach location, “providing expanded capacity to better serve our customers,” according to a company press release.

“Dominic Williams, general manager, and his team are to be commended on a job well done,” says Floyd Sherman, Builders FirstSource CEO. “We have served the state of Florida for a number of years, and this new location will allow us to serve four counties, including Indian Riviera County, St. Lucie County, Martin County and Palm Beach County.”

The 45,000 square-foot facility offers a full line of building materials and is located off the I-95 corridor, the main thoroughfare in southern Florida.

ProBuild Names Don Riley Executive Vice President of Supply Chain and Technology

ProBuild Holdings Inc. has named Don Riley executive vice president of Supply Chain and Technology. In this role, Riley will be responsible for integrating ProBuild’s Supply Chain, Information Technology and Manufacturing organizations, including developing strategies and programs to improve the company’s overall operational effectiveness, grow market share and maximize profitability.

He will oversee the planning and implementation of enterprise IT systems in support of business operations in order to improve cost-effectiveness and service quality. Additionally, Riley will direct and manage ProBuild’s technology infrastructure and environment, including the design and development of business-focused application solutions to support ProBuild’s business operations.

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