Builders FirstSource (BFS) doubled its presence in the nation's 10th-busiest housing market today by announcing it acquired West Orange Lumber Co., a $15 million dealer based 30 miles west of Orlando in Groveland, Fla.
"The acquisition of West Orange provides us with an extensive customer base that includes custom and semi-custom builders, along with commercial contractors, and fits nicely within our overall growth strategy," BFS CEO Floyd Sherman said in a news release. "This new location also offers onsite manufacturing capabilities of roof and floor trusses, and will allow us to more easily serve the fast-growing, northern portion of the Orlando market, providing us with an excellent opportunity to significantly grow our share in this market."
The West Orange facility, which had sales of about $15 million in 2013, joins an already existing BFS yard in Orlando. The No. 6 firm on the ProSales 100 also has a facility further west on the booming I-4 corridor, near Tampa in Plant City. That's about 50 miles southwest of Groveland. Finally, West Orange Lumber is 35 miles south of The Villages, a huge retirement community whose 3,495 closings in 2013 put it 28th on the Local Leaders list. John Arellano, vice president of West Orange Lumber, will remain at the site as general manager of BFS' newest facility.
The Orlando/Kissimmee/Sanford market ranks 10th on Builder's 2013 Local Leaders list, with 7,449 closings in 2013, according to data compiled by Hanley Wood's Metrostudy unit. The Tampa/St. Petersburg/Clearwater market ranks 15th with 5,967 closings.
Today's news comes one month after BFS expanded in Houston--the nation's No. 1 housing market--by acquiring Slone Lumber. That move gave BFS its first full-service lumberyard in in Houston; until now, its only operation in the metropolis was a window manufacturing facility.
BFS recorded $1.49 billion in sales in 2013, all of it to pros. It had 100 facilities and roughly 3,300 employees at the start of this year. On July 24, the company posted a $10.6 million net profit for the second quarter on a 7.1% rise in sales to $426.5 million, the biggest amount for any quarter since 2006.