In what ranks as one of the biggest deals this year among building material dealers, US LBM, No. 13 on the ProSales 100 list of top dealers, announced Aug. 8 that it acquired Samuel Feldman Lumber, a four-unit yard based in Brooklyn that ranks 29th on the same list.
The deal brings to US LBM a business that claims to be the leading provider of wallboard, steel stud, insulation, wood products, and specialty building supplies in metro New York. Feldman posted $156 million in sales last year, up 25% from 2012, with 95% of its sales going to pros. With that kind of growth combined with US LBM's 42% increase in revenue last year, the transaction is likely to make Green Bay, Wis.-based US LBM the industry's next billion-dollar company.
US LBM is a holding company for 13 building material distributors operating out of 70 locations in 11 states. Its holdings use their local names, so Feldman's orange-and-blue logo is unlikely to change. Neither will its leaders, Robert and Kenny Feldman; Kenny Feldman will serve as the company's president, while Robert will remain with the business.
US LBM appears to be in acquisitions mode. On May 9, the company announced it had acquired Desert Lumber & Truss and Desert Fasteners & Supply of Las Vegas, Nev., as well as their sister company integrity Truss of Cedar City, Utah.
In April, US LBM moved into Florida when it acquired Jones Lumber in Boca Raton from founder and president Mark Jones. That same month, US LBM announced its Wisconsin Building Supply (WBS) subsidiary opened two new locations in the Fond du Lac, Wis., area, expanding product and services offerings to East Central Wisconsin. Meanwhile, US LBM's Hines Lumber unit teamed up with Mike's Deck Centers to expend into northern Illinois.
Both the Feldman and Desert Lumber deals involve companies that sell or provide specialty products. US LBM president L.T. Gibson has said that area is a focus for the company today.
