The 35-year-old company will become a division of Direct Cabinet Sales (DCS), an East Coast operation that US LBM acquired in April. Simon Eidlisz will continue to run day-to-day operations.
"Their production capabilities will allow DCS to expand volumne output and our service platform," Direct Cabinet Sales presidentg Joe DeMussi said of Gold & Reiss,. "This acquisition will give us a solid presence in Brooklyn, support the organic growth we have already experienced in tbe New York City market, and allow us to diversify our customer base into a previously unpenetrated property management market."
US LBM has grown dramatically in recent years and now ranks 7th on the ProSales 100 with sales in 2014 totaling $1.42 billion. At the start of this year it had 97 locations. In today's announcement, US LBM said it now has 164 locations spread across 22 states.
On July 29, the private investment firm Kelso & Co. announced it was acquiring US LBM from the previous majority owner, BlackEagle Partners. US LBM president and CEO L.T. Gibson noted then that BlackEagle also was reinvesting as part of the deal and that the new capital structure "will allow us to continue to grow organically and through acquisitions,." Today's deal is the first US LBM has announced since Kelso got involved.