Six weeks into 2023, we already have seen one transaction that's far bigger than anything done in 2022, as well as announced intentions to open 60 construction supply companies and hardware stores before this year is out.
The major deal has US LBM selling its drywall specialty divisions to L&W Supply, ABC Supply's drywall-focused division. The 46 locations (by Webb Analytics' count) carry the banners of Coastal Roofing Supply, Feldman Lumber, Richardson Gypsum, Rosen Materials, and Wallboard Supply. Operations in 12 states are involved, but the biggest changes will be in Florida, where 26 of the 46 stores are located.
The US LBM-L&W Deal is one of 11 announced so far this year, involving 11 different buyers. Others reported since mid-January have SRS Distribution buying Marsh Building Supply's seven locations; Nation's Best Holdings acquiring East Texas Hardware of Kilgore, TX; and Central Network Retail Group's Frattallone's Hardware buying Everson's Hardware of Waconia, MN.
Early 2023 has featured an unusual number of announcements by dealers regarding plans to open facilities. Most prominent was 84 Lumber, which declared it was going to open components plants in Florida, Georgia, South Carolina, Idaho, Massachusetts, and New Jersey, plus lumberyards in Stockton, CA, Denver, CO, and Greeley, CO, and a door shop in Denver. Atlantic Group opened a truss plant in Fairmont, NC, and Kapers Building Material is putting a truss operation into a corrections facility in Greencastle, IN.
Other lumberyards slated to open this year are Copeland Do it Best Lumber in Lincoln City, OR; Three Bears Alaska in North Pole, AK; Drexel Building Supply in Kewaskum, WI; McCoy's Building Supply in Lockhart, TX.
The move in Lincoln City relates to plans by Builders FirstSource to open a yard in South Beach, OR, that will consolidate its soon-to-be closed Lincoln City and Newport, OR, yards. BFS has similar plans for a new yard in Carbondale, CO, which when completed will contain operations relocated from Aspen, Glenwood Springs, and Basalt, CO.