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At Just 1.4 Locations per Acquisition, LBM's M&A Record in '24 Is Short on Megadeals

Updated: Mar 14

Deals Map
Acquisitions (blue pins), openings (green) and closures of LBM facilities YTD 2024. Not shown: A purchase and an opening in Hawaii and an opening in Alaska. Source: Webb Analytics

Twenty-four buyers. Thirty-one deals. Forty-four facilities acquired. That's the relatively meager tally for LBM's M&A activity through mid-March, Webb Analytics finds. With just two deals involving four locations and another taking in three so far this year, the average number for facilities acquired per transaction stands at a mere 1.4. That's little more than a third of the 3.8 facilities per transaction that LBM's M&A market averaged between 2018 and 2023.

Meanwhile, there have been 67 facilities that either have opened or have had opening dates in 2024 declared.

Neither of the two biggest deals involved lumberyards. In one, Outdoor Living Supply acquired The Rock Place, a four-store operation serving the Nashville, TN, market. In the other, Beacon acquired a waterproofing specialist, Metro Sealant, which has a quartet of stores in the Washington, DC, area.

In the lumber sector recently, 84 Lumber made what for it was an unusual move when it purchased West Coast Lumber's two production facilities in Southern California. The usual practice at 84 is to buy land and build on it. That's the case with a yard it opened in February in Palmetto, FL. Taking over the West Coast Lumber yards will help speed up what it describes as a rapid expansion in California.

US LBM purchased Homestead Building Systems, a component manufacturer with two addresses in Virginia.

Nation's Best Holdings moved into Colorado for the first time by taking over Walden-based Timberline Builders Supply. It also expanded in Kentucky, absorbing the two Pilot Lumber stores.

Central Valley bought Caseywood of Grass Valley, CA, thus helping the Napa-based Central Valley expand east toward the Sierra Nevada slopes.

Hawaii's HPM Building Supply revealed plans to open a store on the island of Lanai for the first time. Meanwhile, McCoy's Building Supply announced its new Lockhart, TX, branch will hold its grand opening on June 10. Also in Texas, Cassity Jones has just opened a new location in the Fort Worth suburb of Willow Park.

Michigan got two new stores: A Beacon facility in Saginaw and an L&W Supply branch in Portage. And Blanchard, LA, could see a new Ivey's Building Materials location open as early as April.

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