Lansing Building Products, this week, announced it signed an agreement to acquire the distribution business of Harvey Building Products, based in Waltham, Massachusetts.
In 2019, Lansing Building Products garnered revenue of $597.4 million. When joined with Harvey Building Product's distribution business, the newly formed company will have a combined 2019 revenue of approximately $1.1 billion and will operate 113 branches in 35 states, according to Hunter Lansing, president and CEO of Lansing Building Products.
Even though Harvey's manufacturing business is not part of the acquisition, customers will continue to have access to the complete line of Harvey-manufactured and branded windows and doors. "Harvey has the No. 1 window brand in the New England area," Lansing said, adding there are no plans to introduce Lansing's line of windows to this market.
The deal brings 36 Harvey branches, from Maine to Philadelphia, under the Lansing brand. Prior to the acquisition, Lansing's reach went as far north as Delaware so, geographically, the businesses complement each other well and there are no plans for consolidation, Lansing told ProSales.
"We’re going to take the best of both companies, put them together, and form a greater, stronger company," Lansing said.
To help finance the deal, Markel Ventures has signed an agreement to acquire a majority interest in Lansing Building Products. Based in Richmond, Virginia, Markel Ventures is part of Markel Corporation, a publicly-traded diverse financial holding company.
“Markel Ventures believes strongly in the business models of Lansing and Harvey. It has put its full trust in Lansing’s senior team to lead our growing business going forward,” Lansing said.
The transaction is expected to close by the end of April. Once this happens, Hunter Lansing will continue to serve as Lansing’s president and CEO. The rest of Lansing’s senior team—COO Billy Mosby, CSO John Witt, and CFO Mason Chapman—will remain with the company. Hunter’s father, Chris Lansing, will stay on as chairman of the board. Jim Barreira, current chairman of the board of Harvey Building Products, will join Lansing’s board of directors. Hunter’s brothers Ted and Chase Lansing, will pursue interests outside the company.
“I look forward to welcoming Harvey associates into the Lansing family and thank Markel Ventures for its faith and confidence in our business going forward. These are exciting times to be at Lansing. Lansing will continue to exist to make a positive impact in people’s lives,” Hunter Lansing stated.
For additional information about the acquisition of Harvey Building Products' distribution business and the Markel partnership, watch the video below, which was produced by Lansing: