US LBM, SRS Spring Forward to Lead Recent M&A, Openings Charge
M&A, openings, and closures activity through the first days of May now is running 50% ahead of last year's pace thanks in big part of US LBM's just-announced purchase of Texas-based Higginbotham Bros.
That deal combines with US LBM's acquisition of Iowa's Gilcrest/Jewett in January and the opening of another Universal Supply branch in New Jersey in April to increase US LBM's total number of dealers by 50 this year alone. It now claims more than 320 locations nationwide.
US LBM also has topped SRS Distribution for the title of most active company in 2021, but it's not for lack of trying. SRS announced the opening of eight new roofing outlets and one new hardscaping store in April, bringing to 42 its total additions for the year.
Through May 3, there have been 179 deals, openings, or closures year-to-date. There were only 121 such actions by this point in 2020; the market didn't start heating up until late last year.
In other activity since late March:
* L&W Supply, a division of ABC Supply, opened a new branch in Palm Springs, CA., and bought Starr's Building Supply of Sacramento, CA.
* American Construction Source purchased Foley (MN) Lumber and Milaca (MN) Building Source.
* TAL Holdings acquired Mount Vernon (WA) Building Center.
* Hancock Lumber bought Lapointe Lumber, a two-unit operation based in central Maine.
* Kodiak Building Partners bought Alpine Appliance, which has stores in Avon and Basalt, CO.
* Utah's Sunpro bought Columbia Millwork, a specialty firm based in Vineyard, UT.
* Costello's Ace Hardware bought and renamed Rankin's True Value hardware in Warrenton, VA.
* Specialty dealer Beach Building Products started up in Jacksonville Beach, FL.
* E.C. Barton's newest Home Outlet center is in Tulsa, OK.
* Westlake Ace Hardware opened a new store in Livermore, CA.
* Professional Builders Supply opened a distribution center in Charlotte to serve that region.
* Aker's True Value hardware opened in Brushfork, WV.
* Teton Lumber & Do it Best Center in Choteau, MT, remains on sale for $1.3 million, including $700,000 in real estate but excluding $250,000 in inventory.
* An unidentified lumberyard in western Pennsylvania that claims annual gross revenue of $2.7 million is on sale for $1.9 million. The price includes $925,000 in real estate, $675,000 in inventory, and $300,000 in FF&E.
* A lumberyard in Yucaipa, CA, that claims gross revenue of $2 million and cash flow of $375,000 is for sale for $4.45 million. That may seem high, but the yard is in Riverside County, where there's huge demand for space to build warehouses to handle imports through Southern California from Asia.
* In Cherokee County, NC, a lumberyard that claims annual gross revenue of $5 million is for sale for $3.55 million. The price includes $950,000 in real estate, $450,000 worth of inventory, and $420,000 in equipment.
* There's a hardware and lumber store in rural Jefferson County, AL, for sale for $635,000. It claims gross revenue of $1.25 million.