US LBM, the nation's fifth-biggest pro-oriented dealer, signaled it's back in a buying mood today with its announcement that it has acquired Myrtle Beach Building Supply, a two-yard operation in South Carolina. It's the first deal for US LBM in 15 months.
Founders Bobby Smith and Joe Jenkins will remain with Myrtle Beach Building Supply, which has operations in Murrells Inlet and Little River in the Palmetto State's Grand Strand area and is adjacent to one of North Carolina's fastest-growing counties. Smith will stay on as president.
Myrtle Beach Building Supply sells roofing, siding, windows, doors, hardware, fasteners, and trusses, primarily to custom build builders and remodelers. "We believe this new partnership further improves our competitive position in the expanding Southeast construction market and complements our strategy of adding local market leaders with long-standing customer relationships to our portfolio," US LBM president and CEO L.T. Gibson said in a news release. The announcement pointed out that today's news means US LBM now has eight facilities in the Carolinas.
This appears to be the first acquisition for US LBM since its Feb. 1, 2017, deal for Arkansas-based Ridout Lumber, at that time the No. 31 company on the ProSales 100. Today's announcement comes just nine days before the one-year anniversary of the registration statement US LBM filed to signal its intentions to move from privately owned to publicly traded status.
Since then, US LBM has filed a number of supplemental registration statements that have provided insights into its operations and finances. The March 23 update indicated the Buffalo Grove, Ill.-based firm swung to a $1.2 million net profit in the fourth quarter on an 11.2% rise in sales to $786.8 million. It finished the year $10.9 million in the red compared with 2016's $47.7 million net loss. The company's updated S-1 registration statement in advance of an initial public offering didn't give quarterly numbers. The numbers reported here are based on subtracting the nine-month numbers from the latest full-year figures.
