M&A Activity Heats Up If the last few months are any indication, mergers and acquisitions activity in the LBM supply industry is not showing any signs of slowing down. Dealers are already building on the strong M&A activity from 2004: the 2005 PROSALES 100 Annual Survey of Leading Construction Suppliers indicates that 26 of the top 100 dealers acquired at least one company in 2004 and 19 companies plan to acquire a total of 92 yards this year. Along with Hope Lumber's announcement that it has acquired Leed's Building Products (see page 40) and Stock Building Supply's purchase of Davidson Industries (see page 14), several other companies have announced purchases this spring:
Lanoga Corp. (www. lanoga.com) employs more than 8,000 people, operates more than 300 stores in 20 states with additional divisions including Lumbermens, Spenard Builders Supply, Home Lumber, and Dixieline, and had reported 2004 gross sales of $2.75 billion.
“The Winchester market fits well with our existing footprint,” says Roper Bros.' executive vice president Barry Brockwell. “Steve and Theresa Cluss, the former owners, built an exceptional development in the marketplace. We have similar customer profiles so there are a lot of synergies between us.” The acquisition expands Roper's market into the northern and central areas of Virginia and creates a combined annual revenue of more than $120 million. Valley Lumber's management, including its former owners, will remain with the company.
Founded in 1909, Roper Bros. (www.roperlumber. com) operates four additional yards in Virginia.
On April 8, ABC announced its purchase of Fort Lauderdale, Fla.–based Town & Country Industries, a five-unit distributor of pool and patio enclosures and hurricane protection products, as well as building products. Town & Country will continue to operate under the Town & Country name as a separate business unit of ABC; the Town & Country management team will remain on board, including former owner, Tim O'Connor, now division president.
ABC Supply (www.abcsupply.com) was founded in 1982 and has more than 288 locations in 45 states and reported 2004 sales of $2 billion.
White Cap Construction Supply (www.whitecap direct.com) was purchased by The Home Depot in June 2004 and had reported 2004 sales of $500 million.
Vermont American, VFW Partner to Help Soldiers' Families Dealers and contractors looking to give something back to our country's military families can donate not only with their wallets but also with their hands through a new program developed by bits and blades manufacturer Vermont American and the Veterans of Foreign Wars (VFW). Unmet Needs is a non-profit program that supports the needs of the families of servicemen and women who are deployed or were recently deployed abroad.
For families with a spouse or parent serving abroad, financial hardships can become a burden that can make unexpected needs especially difficult. Unmet Needs aims to ease some of these families' crises by providing assistance when and where it's needed—whether it's to replace a water heater, fix a furnace, rebuild a home destroyed by fire, or remedy other crises. In addition to accepting financial donations from the public and material donations from suppliers and dealers, Unmet Needs also is recruiting licensed and insured carpenters, plumbers, and other tradespeople to volunteer to donate their skills. Once signed up and verified, you will be registered in a national database; if a family in your area has a need that would require your skill, you could be called on to donate.
Vermont American has committed $1.25 million over the next five years to Unmet Needs. The money will cover administrative costs, allowing 100 percent of outside donations to go directly to helping families.
To donate money or materials or to sign up to donate a trade skill, visit www.unmetneeds.com or call 866.789.6333.