American Construction Source (ACS) grew markedly in the Sacramento market today while expanding elsewhere into two more Western states by announcing it has acquired Homewood Holdings, another fast-growing dealer. Financial terms weren't disclosed.
ACS' purchase adds eight facilities in California, Washington, and Arizona to a company that already had about a dozen facilities in Northern California and Nevada's Lake Tahoe region. ACS ranks 14th on the latest ProSales 100 with 2018 revenues topping $566 million, while Homewood stands 58th on the same list with nearly $105 million in sales.
Private equity firms Angeles Equity Partners and Clearlake Capital Group are the major backers of ACS, which is headed by CEO James Drexinger. It's perhaps best known for the way it burst onto the LBM scene in September and November 2008 with its purchase of the Meek's and Arrow Building Center chains.
Homewood isn't much older, having come to life in early 2016. It's owned by Building Industry Partners (BIP), a private equity firm that previously helped create US LBM and Kodiak Building Partners and still owns U.S. Fence, No. 53 on the ProSales 100.
Homewood is a family of brands, consisting of Homewood Building Supply, with a lumberyard, a truss plant and a door operation in the Sacramento, CA, suburbs; Eagle Creek Siding, Custom Choice Door, and the two-unit Evergreen Lumber in the Seattle-Tacoma market; and The Door Mill in Phoenix. All will continue to operate under their existing names.
"The Homewood team is energized to join ACS," Stockman said in ACS' news release. "I believe our combined talents and capabilities will yield great results for our customers.” And in BIP's news release, he stated: "I think we’ve realized our vision of building a pro dealer organization across multiple markets that cares deeply about serving its customers, while also being a place where employees love to work. As our highly successful partnership with BIP concludes, we’re excited about Homewood’s future and continued growth as part of the ACS platform. There is substantial opportunity ahead for Homewood, our employees and our business partners.”