SRS' L.A. Area Play Marks Biggest Deal So Far in 2021
The latest LBM deals, openings, and closures map has a lot of dots in Southern California and a lot of action elsewhere, and in both cases there's one company involved.
SRS Distribution's purchase of J B Wholesale Roofing and Building, a specialty dealer with 11 yards, ranks as the biggest single deal to have taken place this year. But right behind it was the purchase of eight Wolf Creek Distribution facilities by Heritage Landscape Supply Group, a division of SRS. Add to that Heritage's purchase of Atlanta Landscape Materials of Doraville, GA, and the SRS-Heritage combination figures in 20 of the 39 locations that have changed hands through mid-February.
In general, 2021 is off to a busy pace. There have been 55 facilities that figured in openings, closures, and acquisitions so far this year: 39 in deals, 15 greenfield openings that have either occurred or been announced, and just one closure.
Aside from the SRS deal, these notable actions have taken place since mid-January:
* Massa Home Center acquired Allied Builders Supply of Challis, ID, and sister company Lemhi Lumber in Salmon, ID.
* Continuing its affection for Minnesota's Twin Cities market, US LBM purchased Villaume Industries, a truss manufacturer based in Eagan, MN.
* Nationsbest Holdings continued its consolidation of operations that are part of the Do it Best network, this time acquiring BTU Do it Center of Las Vegas, NM.
* GMS announced all at once the opening of five greenfield sites: In Waco, TX; Egg Harbor Township, NJ; Memphis, TN; Jackson, TN; and Jonesboro, AR. And that same Feb. 3 day, it also reported its purchase of a Canadian outfit, D.L. Building Materials, which has branches in Kinston, Ontario, and Gatineau, Quebec.
* R.P. Lumber entered Iowa for the first time, purchasing Dick-N-Sons Lumber of Blue Grass.
* Contract Lumber staked its claim to do business in the Wilmington, NC and Myrtle Beach, SC, by opening a yard between the two in Whiteville, NC.
* American Construction Source, seeking to beef up its Arrow Building Center division, purchased Builder's Resource Group, the owner of a Lumberyard in Woodville, WI, and a design center in Hudson, WI.
* Look for Beach Building Products to open in Jacksonville Beach, FL, this spring, according to a LinkedIn post by owner Mason Third.
As usual, the auction pages include several lumberyards offering them for sale. Most are modest operations, but then we came across this offer from an unnamed dealer that claims $26.5 million in gross revenue and EBITDA of $3,873,000 from its two stores located 55 miles apart in the Southwestern U.S. In addition:
* Walker Lumber of Minong, WI, can be yours for $1.55 million. Its annual gross revenue tops $2.1 million.
* Gastineau Hardware and Lumber of Ellington, MO, is for sale. The asking price of $2 million buys you a company with gross revenue of $1.6 million plus $400,000 worth of inventory and $850,000 in real estate.
* An unnamed Missouri business claims $3 million in gross revenue and $324,000 in EBITDA. It didn't disclose an asking price.
* An unidentified Central Pennsylvania lumber company with $1.25 million in revenue and $100,000 in EBITDA is for sale. No asking price was disclosed.
We have learned of two acquisitions made late in 2020 that weren't reported in Webb Analytics' 2020 LBM deals report. In one, East Hardwoods (the parent company that includes Safrit's Building Supply) acquired Community Lumber & Hardware in Swansboro, NC. The yard will continue under that name. In the other deal, Will and Gary Nolan purchased Hahn Lumber in Harmony, MN. They've renamed it as Nolan Lumber.