Builders FirstSource (BFS) will organize itself on both geographic and operational lines when it merges with ProBuild this summer, BFS CEO Floyd Sherman announced.

A confidential memo sent on June 29 to all of the nearly 14,000 BFS and ProBuild employees said the combined company will organize field operations into East and West territories, with a chief operating officer overseeing up to five geographic regions. Each territory also will have a single person responsible for the combined dealers' manufacturing operations. Millwork and construction services will report to their local market operations.

Here is the planned organizational structure, taken from the memo. All of the slots are taken except for a chief operating officer in the West territory.

Organizational chart for the planned Builders FirstSource merger with ProBuild

"Over the next few months, I will continue to evaluate the West territory and most likely select a leader from the named senior vice presidents of operations," Sherman wrote. In the meantime, western SVPs will report directly to him.

Here is the map showing how the regions will be organized:

Map showing proposed organizational structure of BFS and ProBuild

At first glance, many of the assignments continue current duties. For instance, Wayne Canada, who ran BFS' operations in the Washington, D.C., metro area, now will lead the combined company in Region 2. Meanwhile, ProBuild's Ed Waite and Joe Lawrence have long overseen operations in the Pacific Northwest and Southwest, respectively. In the merged company, they will do the same in Regions 8 and 9, respectively. BFS doesn't have any outposts west of Texas, so they in essence will run the same stores they did before.

In Texas, a vital state for both markets, Sherman tapped ProBuild's Paul Vaughn to head operations in Region 6--Texas plus Oklahoma, Kansas, and western Missouri. Vaughn holds essentially the same job for ProBuild today.

In other regions of the country:

  • Tom Adams, an SVP at ProBuild, will lead Region 1, which stretches along the nation's northern half from Connecticut to Illinois. 
  • Todd Vance, an area VP for BFS, will head Region 3, which takes in North Carolina's Piedmont and coastal regions plus parts of South Carolina.
  • Another BFS exec, Greg Turnage, will lead Region 4, which occupies much of Florida and the Georgia and South Carollina coastal markets.
  • Region 5 consists of much of the inland Southeast. It will be headed by ProBuild's Steve Herron.
  • Region 7--the Upper Midwest--is part of ProBuild's contribution to the merger. It will be led by ProBuild's Scott Robins.
  • Oversight over components manufacturing went to BFS' Lou Davis in the East and to ProBuild's Ron Williams in the West.

"The goal is to have the organizational structure for the combined company and the physical location of all required roles finalized by end of July," Sherman's memo said. He noted that regulators have approved the merger and the transaction should close this summer.
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