Robert Mellor, Building Material Holding Corp.'s long time CEO, will depart the company along with two other senior officers after BMHC emerges from Chapter 11 around the end of this year, America's No. 6 LBM operation announced today.
Chief administrative officer Paul Street will take over as chief executive officer, while company co-founder Stanley Wilson will continue as president and chief operating officer. In addition, the company announced a new slate of board members.
BMHC entered Chapter 11 bankruptcy law protection on June 16. It expects to emerge from bankruptcy protection as a reorganized company around the end of the year. Today's announcement was part of its transition plan. Shareholders must vote by Nov. 25 on a previously announced financial restructuring plan, and a court hearing to confirm the plan is scheduled for Dec. 10 in U.S. Bankruptcy Court in Wilmington, Del.
As part of the management changes, the Boise, Idaho-based pro dealer and construction services provider disclosed Mellor, who also is company chairman, will leave along with senior vice president and CFO William Smartt and vice president and treasurer Mark Kailer. All three executives are based in the company's San Francisco office, which was BMHC's headquarters before moving to Boise earlier this year.
Mellor became chairman of the board in 2002 and has been Chief Executive Officer since joining the Company in 1997. He was also president of BMHC from 1997 to 2008.
Mellor's replacement, Street, is currently senior vice president, chief administrative officer, general counsel and corporate secretary at BMHC. He joined the company in 1999 as senior vice president, general counsel, and corporate secretary, and was named chief administrative officer in 2001. In his current role Street is responsible for the legal affairs of the company and administrative functions at its corporate office in Boise. He previously served as BMHC's outside counsel while a partner of the law firm of Moffatt, Thomas, Barrett, Rock & Fields.
Wilson, who will continue to serve as president and COO, first served with Boise Cascade and, since 1987, with BMC West, the pro dealer arm of BMHC. He was elected president and chief operating officer of BMHC 2008 and president and chief executive officer of BMC West in 2004.
Daniel McQuary, currently vice president and director of finance for BMHC's brands, BMC West and SelectBuild, will serve as chief financial officer after the transition. McQuary previously served as CFO of Lone Star Plywood & Door Corporation from 1994 until its acquisition by BMC West in 1997. He has held management positions in the building materials distribution industry for the past 15 years.
A filing today in U.S. Bankruptcy Court that gave biographies of the new management also said that Street and Wilson will be paid $600,000 per year, while McQuarry will get $215,000.
In the statement issued today, BMHC said it expects to emerge from the reorganization process with a "stronger balance sheet, enhanced liquidity, and a streamlined, more efficient cost structure." Under its plan, BMHC will reduce its outstanding debt by approximately $150 million to $135 million upon emergence. The company has obtained commitments for $103.5 million of exit financing to support its ongoing operations and future growth, it said.
BMHC's new board of directors will consist of Street along with:
- Peter C. Alexander, past president and CEO of ORCO Construction Distribution;
- Marc Chasman, president of Picerne Capital West, a real estate investment group;
- Dennis Downer, founder and CEO of Intermountain Orient, a lumber distributor in Boise;
- Jay Hunt, a turnaround consultant based in Sacramento, Calif.; and
- Carl Vertuca, Jr., president of The Vertuca Group, a venture capital and real estate investment company founded in 2000.
BMHC company ranked sixth on the 2009 ProSales 100, with sales in 2008 of $1.3 billion, all of them to pros.