The acquisition gives BFS its first full-service lumberyard in what BUILDER magazine ranks as the nation's busiest housing market. Until now, its only operation in the metropolis was a window manufacturing facility. Aside from selling lumber, engineered beams, doors, moulding, trim, and cabinets, Slone also provides installation services for exterior doors, shutters, and cabinets.
"The Slone purchase adds to our presence and gives us a solid platform to further expand our business in the highly attractive greater Houston market," Floyd Sherman, BFS' chief executive officer, said in a statement. "It provides us a top-quality distribution business, outstanding employees and an established customer base to complement our existing window manufacturing operations in the surrounding area." BFS noted that Slone lumber president and owner Gregg Slone will remain as general manager.
BFS ranks sixth on the current ProSales 100, with $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 April 24, it reported a net loss in the first quarter of $3.4 million, less than one third its $11.8 million net loss in 2013's first three months. Sales in the quarter rose 8.2% year-over-year to $345.9 million, operating income more than quadrupled to $5.4 million, and gross margin rose to 21.7% from 19.5%.