These 6 Maps Show How US LBM's Foxworth-Galbraith Deal Alters the Competitive Scene in Key Markets
US LBM's acquisition of Foxworth-Galbraith significantly boosts the dealer's ability to compete in five of the nation's most important new-home markets, particularly against Builders FirstSource and 84 Lumber.
The deal, announced July 8 and expected to close in the third quarter, easily ranks as the biggest LBM acquisition this year. Foxworth-Galbraith ranked 25th on this year's Webb Analytics Construction Supply 150, with 2021 sales of $927 million. That's a little more than 10% of the total revenue US LBM reported: $9.22 billion. BFS remains the giant in the lumber category, with $19.9 billion in sales last year, while 84 is third at $7.9 billion.
US LBM says the FoxGal deal will increase by one-third, to 111, the number of locations it has in five Southwestern states. This map shows where the gains are. FoxGal sites are marked in green, existing US LBM sites in red.
While US LBM cites five states where adding FoxGal will help it grow, the deal's greatest impact is likely to be found in how it affects the competitive picture in five markets: Dallas-Fort Worth, Austin, San Antonio, Houston, and Phoenix. Those markets have some of the nation's most robust homebuilding activity, and are likely to keep growing even as other parts of the country sputter.
Which dealers are in the fight varies a bit by market. These maps tell the story:
The Dallas-Fort Worth Metroplex is home to both FoxGal and BFS, so it's logical to see both represented prominently there. McCoy's Building Supply historically has avoided this area, but now it's nibbling at the edges. Smaller but steadily growing Nation's Best Holdings has a number of locations on all but the northern perimeter. Keep an eye on competition along U.S. 75 from Plano north through McKinney and on to the Oklahoma border. US LBM's October 2021 acquisition of McKinney Lumber and Oldham Lumber, combined with its purchase of local FoxGal branches, give it the benefit of proximity, even if BFS and 84 are relatively close by.
Austin's growth spurt has come more recently than Texas' other major markets, and it's also just north of McCoy's headquarters in San Marcos. Thus it's more prevalent here. BFS is strong on Austin's fast-growing north side. US LBM is represented here mainly through its acquisition of J.P. Hart and Higginbotham Bros.
San Antonio is more of a mixed bag, with local firms like Alamo Lumber, MG Building Materials, and Cassity Jones in the mix, plus two robust 84 Lumber yards.
In Houston, the many BFS pins on the map reflect not only current demand but historical roots: This was the home of Bison Lumber, a local power that was acquired in turn by Stock Building Supply and BMC before becoming part of BFS. McCoy's also is strong here (it was born in Galveston), and M&D Supply is locally based.
The colors on the Phoenix map would have looked much different a year ago, before BFS bought the Alliance group and US LBM took over FoxGal, R&K Building Supply, Crown Components, and Truss Fab. And while 84 has just one pin here, near Chandler, it's one of the biggest revenue-producers in the whole company.