Lumber and building material buying cooperatives Progressive Affiliated Lumbermen (PAL) and ENAP today announced they intend to merge. The new co-op will span 33 states and include 447 member companies operating 742 lumber yards.

Though shareholders still need to approve the merger, both companies expect to close on the deal in the first quarter of 2015. Once the agreement is finalized, the new company will operate out of three locations in New Windsor, N.Y., Grand Rapids, Mich., and Monroe, La.

"This transaction is extremely positive for members and employees alike,” said Steve Sallah, ENAP president and CEO. “The new cooperative will have a combined purchasing power of $1.5 billion dollars annually and will improve our ability to execute our mission of creating a competitive advantage for our member-dealers."

“This merger is a great fit for both organizations and will provide instant access to new products and programs. ENAP and PAL have a strong history of serving our markets, and our combined size will provide even more opportunities for our members, employees and vendor partners," said PAL’s CEO and president, Paul Dean.