Deals Tally for 1H21 Shows the Action Remains Frenetic
To give you a sense of how busy dealmakers have been so far in 2021, consider this: The number of deals, openings, and closures so far this year is more than double what we did in the same period last year, and it nearly matches the total for all 2019.
Through July 6, we have had 52 separate acquisition deals involving 280 branch locations, plus 56 greenfield openings and just three closures. Of course, that 339 total pales compares with the 589 yards affected in deals after July 6 last year, but it is far greater than the 152 locations affected in the first half of 2020 and the 379 in all 2019.
One other notable number: Over the past 18 months and one week, a total of 1,070 locations have been bought, merged, opened anew, or closed outright.
US LBM figures prominently in the 2021 action, particularly with its moves since May 1 that increased its presence in Georgia and Texas. On July 1, it announced the acquisition of Brand Vaughan Lumber, arguably the Atlanta area's biggest remaining independent dealer. As for Texas, US LBM followed up on May's purchase of the Longhorn State's Higginbotham Bros. chain by absorbing J.P. Hart Lumber, which has five lumberyards and three components plants.
In other deals:
Less than a month after selling the Meek's chain to US LBM, American Construction Source became a buyer again, picking up Tanco Lumber of Branson West and Forsyth, MO.
Nebraska-based Mead Lumber grew bigger one state south by acquiring Kansas' Heartland Building Center, which has a lumberyard and a truss plant in Hays plus lumberyards in Russell and Stockton.
SRS Distribution's Heritage Landscape Supply Group purchased Southern Stone of Raleigh, NC, and Scott Stone of Mebane, Greensboro, and Raleigh, NC.
Hamshaw Lumber picked up Leader Home Center, with three facilities in Massachusetts (South Deerfield, Greenfield, and Barre) and one in Vermont (Brattleboro).
Texas-based Nation's Best Holdings added New England to its territories with the purchase of Caron Building & Rental Center of Berlin, NH. Do it Best is an investor in Nation's Best, which to date has bought yards belonging to the Do it Best co-op.
Spahn & Rose was similar in moving outside its Iowa base to acquire Metro Building Products in the Atlanta suburb of Marietta, GA.
ABC Supply bought Exterior Supply, a two-unit Kentucky outfit known for exterior products rather than roofing.
The Building Center, a mainstay in Charlotte, acquired Harleyville Builders Supply of Holly Hill, SC. That store is located midway between Charleston and Columbia, SC., setting up The Building Center to serve both markets.
Local entrepreneur Aaron Burquest bought Latvala Lumber of Grand Rapids, MN to complement his existing granite business.
McCoy's Building Supply opened a new facility in Liberty Hill, TX.
Marcus Lumber opened a store in Storm Lake, IA.
Westlake Ace Hardware opened a new outlet in Derby, KS.
Heritage Landscape Supply Group opened facilities in six Texas cities: Katy, San Antonio, Conroe, Austin, Mansfield, and Richland Hills.
84 Lumber opened a truss plant in Statesville, NC, on the site of a store it had closed in 2017.
Murphy Truss opened for business in Washington, IN.
LL Flooring outlets opened in Hattiesburg, MS, and Beckley, WV. Meanwhile, Floor & Decor opened its own new outlet in West Des Moines, IA.