Stock Building Supply announced this morning that it has acquired National Home Centers, the troubled Springdale, Ark.-based dealer that ranked 26th on last year's ProSales 100.
Although terms of the deal were not disclosed, previous court documents showed that Stock had put in an opening bid of $15 million to acquire National and that National had current assets of $23.5 million.
Last December, National Home Centers filed a voluntary petition for federal bankruptcy reorganization. Stock entered into an asset purchase agreement with National Home Centers on Feb. 26, for the purchase of substantially all of National's assets. A federal bankruptcy court in Arkansas approved that deal on Friday.
The deal includes four retail locations in Springdale, Fort Smith, Conway, and North Little Rock, Ark., along with the corporate office in Springdale. At its height, National Home Centers operated 10 retail locations in three states with sales of nearly $200 million.
"We are pleased to complete this transaction and look forward to working with our new colleagues in central and northwest Arkansas," Joe Appelmann, president and CEO of Raleigh, N.C.-based Stock, said in a statement issued today.
"Stock transformed its operating model over the past year to become a leaner, more focused organization," Appelmann said. "This process has allowed us to seize significant opportunities like National Home Centers."
Appelmann also said Stock will continue to "explore intelligent growth options both in our core markets and elsewhere if opportunities arise."
Ken Greene was appointed market manager for Stock's Arkansas operations. Greene has served in several positions at Stock, including posts in operations and sourcing.
Dwain Newman, former chairman and CEO of National Home Centers, said the sale will allow National Home Centers "to remain fully committed to serving our customers with quality products and services."
Stock, the No. 2 company on last year's ProSales 100, following the sale of 51% interest in the company by its former 100% owner, Britain's Wolseley Plc, to the Gores Group, a private investment firm based in Los Angeles. Stock emerged last July 1 as nearly a $1 billion company with a focus on 19 markets: the Washington, D.C., area; Paradise, Pa.; Richmond, Va.; the Raleigh-Durham, Charlotte, and Winston-Salem/Greensboro markets in North Carolina, Greenville and Columbia in South Carolina; Atlanta; Austin, Amarillo, Houston, Lubbock, and San Antonio in Texas; Albuquerque, N.M.; Salt Lake City and southern Utah; northeast Idaho; and Los Angeles.
