Today's announcement by ABC Supply and USG that ABC will acquire L&W Supply continues a strong trend we've noticed this year in LBM's merger and acquisitions market: specialty dealers have been much busier than traditional lumberyards.
Our database of openings, closures, and acquisitions (see map and third-quarter activity) shows that, so far this year, there have been just five deals involving lumberyards and encompassing just 10 locations. By this point last year, we had 25 deals announced involving 578 yards. More than 400 of those yards were ProBuild facilities acquired by Builders FirstSource, while another 68 were Stock Building Supply locations absorbed into BMC.
Meanwhile, the specialty side has much busier this year, with 15 deals involving 183 facilities, of which 136 are L&W's. By this time last year there were 16 deals in which 116 facilities were involved. Of those, 83 were Roofing Supply Group yards that were acquired by Beacon Roofing.
For all of 2015, there were 32 lumberyard-related deals featuring 611 facilities and 25 specialty dealer-related acquisitions that took in 245 facilities.