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Names You're Used to Seeing Continue to Lead LBM's Deals and Openings


LBM deals (blue), greenfield openings (green) and closures (red) YTD in 2020. Source: Webb Analytics

You'll see much that's familiar when you scan the list of who's involved in LBM deals and greenfield openings in July and early August. At the same time, all the closures we've heard about recently took place before Independence Day.


SRS Distribution led all construction supply companies in July, both in terms of deals and greenfield openings. The roofing specialist purchased A.L.L. Roofing Materials, which has branches in San Jose and Salinas, CA., as well as Lake Havasu, AZ. In addition, SRS announced the greenfield openings of six branches: Conyers, GA; Waxahachie and El Paso, TX; Grand Junction, CO; Bossier City, LA; and Shelby Township, MI. SRS' Heritage Landscape Supply Group was busy as well, acquiring Stone Center of Indiana. That firm has a branch in Spencer, IN, to go with its home base in Indianapolis.


The latest deal saw US LBM announce Aug. 4 its acquisition of Maner Builders Supply of Augusta, GA, as well as Aiken and North Charleston, SC. The deal means US LBM now has 22 yards in the Carolinas and Georgia.

July saw two other active buyers make purchases. Nation's Best Holdings acquired Hall's Hardware of Milton, FL. The deal marks the first Nation's Best branch on Florida's Gulf Coast. And American Construction Source continued to beef up its operations in Northern California by buying Weaver Lumber of Redding.


So far this year, there have been 107 locations involved in deals, 32 greenfield facilities opened, and 22 locations that closed. Those 161 transactions compare with 219 that took place in January through Aug. 4 of 2019. More than three dozen of this year's locations were part of one deal--Lansing Building Products' acquisition of Harvey Building Products. Lansing's acquisition of Massachusetts-based Harvey contributed to New England being the regional leader in deals, with 44 locations in the six-state area involved in deals, opening and closures.


Among other activities:

* A brand-new company, Vaquero Windows & Doors, opened in Rockport, TX.

* Porter's Building Centers plans to open a store in Smithville, MO, by the end of August,

* Bud Blakley Lumber in Chandler, OK, closed July 2.


These lumberyards recently started using auction pages to sell themselves:

* Rim Forest Lumber of Rimforest, CA, is being offered for $4,895,000 in a deal in which the seller estimates the real estate alone is worth $4,250,000. Gross revenue and EBITDA weren't disclosed.

* Walker Lumber in Minong, WI, is for sale. For an asking price of $1.55 million, you get an operation with gross revenue of $2.13 million and store and lumberyard inventory worth $800,000. The real estate isn't included.

* Gastineau Hardware & Lumber in Ellington, MO, is for sale for $2 million, including $400,000 in inventory, $850,000 in real estate, and $75,000 in FF&E. It has annual gross revenue of $1.6 million.

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