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Nearing the 4th Quarter, LBM's Pace of Deals Hasn't Slowed, But Fewer Yards Are Involved

LBM yards acquired (blue pins), newly opened (green), or closed (red) YTD 2022. Source: Webb Analytics

Year-to-date, the construction supply community has had 97 deals made by 50 buyers. At this same point in 2021, Webb Analytics counted 102 deals by 50 buyers. So much for predictions of a slowdown in M&A in 2022.

What's different is the size of the deals: A total of 255 yards have changed hands this year vs. 411 by late September 2021. On the other hand, we've had more greenfield openings so far this year (127) than by mid-September last year (115). There also have been a few more closures--29 vs. 24.

The most important single deal in recent weeks undoubtedly was Builders FirstSource's acquisition of Trussway, a components manufacturing giant with six locations, all in hot markets: Houston, Orlando, Denver, Dallas-Fort Worth, Atlanta, and Washington, DC. Trussway ranks 35th on this year's Construction Supply 150, with an estimated $400 million in revenue in 2021.

Truss manufacturers have been prized targets these past two years, and not just for BFS and the No. 2 lumberyard, US LBM. Just last week, for instance, Tibbetts Lumber acquired D&M Truss in Pensacola, FL.

One of the only rivals to truss manufacturers for desirability is landscaping facilities, a segment where SiteOne Landscape Supply leads the way. On Sept. 1, SiteOne purchased three-unit, Florida-based Stone Plus, and six days later it followed up by acquiring Kaknes Landscape Supply of Nperville, IL. So far this year, SiteOne has made 10 purchases that have landed it 26 facilities.

In other action:

* Ganahl Lumber ventured further north into Los Angeles County by acquiring Northridge (CA) Lumber.

* Big C Lumber bought Delton (MI) Pole Building Supply.

* Kodiak Building Partners acquired Denver-based Western Interior Supply.

* R.P. Lumber grew in Iowa by purchasing Southwest Building Supply of Mount Ayr, IA.

* Southeast Building Supply Interests, a unit of Building Industry Partners, entered Alabama for the first time by purchasing Buettner Bros. Lumber of Cullman.

* Graber Building Supply bought Tuscola (IL) Home Center.

* RoMac Lumber & Supply bought T&D Distribution, which focuses on serving customers in The Villages, FL.

* Former builder Dave Colver bought Piscitello Home Center of Easton, PA.

* US LBM's Coastal Roofing Supply launched in Tampa, FL, co-locating with another US LBM unit, Rosen Materials.

* ABC Supply opened new branches in Redding, CA; Cheswick, PA;

* SRS Distribution's Advanced Building Products opened a new facility in Monroe, LA.

* Gillman Home Center opened its doors in Muncie, IN.

* Floor & Decor grew again, opening branches in Maple Grove, MN; Lexington, KY; and Mooresville, NC.

* Port Royal (SC) Ace Hardware opened Sept. 5, while late August saw the closures of Chicago's Joe Harris Paint & True Value Hardware as well as Biloxi, MS-based Eltzey's True Value Hardware.

* Valu Home Center revealed it was closing stores in Batavia, Fredonia, and Lakewood, NY, effective Sept. 30.

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