Raleigh, N.C.–based Stock Building Supply solidified its presence in the Chicago market and jumped deeper into construction services with the Nov. 2 acquisition of Elgin, Ill.–based Seigle's, an 11-unit pro dealer with 1,300 employees and 2004 gross sales of $257.8 million. According to Stock president and CEO Fenton Hord, the acquisition concludes a courtship begun roughly a dozen years ago that has seen the companies come close to a deal on at least two other occasions. “We've had three yards on the periphery of Chicago, but this now puts us solidly in the market with about $400 million in [expected annual] sales,” says Hord. “The way that we run and manage our businesses is very similar, and it is a great fit.”
Seigle's top management—including chairman Harry Seigle—will remain with the company. “We are confident Seigle's has affiliated with America's premier leader in the building supply industry, benefiting our customers and employees,” Seigle said in a statement announcing the deal.
The acquisition includes the operations of Michael Nicholas Carpentry, Seigle's construction services division that provides turnkey framing services to production builders. According to Hord, Seigle's value-added approach to building materials distribution, component capabilities, and construction services is “highly attractive and reflects where we are moving to position Stock as a whole.” Stock first entered into the construction services arena in August with the purchase of Las Vegas–based Vegas General Construction, a provider of turnkey framing services to production builders in the Las Vegas and Denver markets.
In a separate deal announced Nov. 9, Stock also purchased Amarillo, Texas–based Canyon Drive Lumber, a single-unit pro dealer with 2004 sales of $32 million. “Canyon Drive is an excellent operation,” Hord says. “It fills in a key gap and gives us a larger take in the Texas market.”