ABC Supply Co. announced today it has finalized its purchase of Bradco Supply Corp. to create a $4 billion, 479-location company that has moved to the top of the ProSales 100. Meanwhile, Stock Building Supply revealed it has completed purchasing the assets of Bison Building Holdings and its subsidiaries to become the biggest building materials supplier in the Houston market.
The two deals rank among the biggest in the LBM industry since ProBuild was created several years ago. ABC had been No. 2, behind only ProBuild, on the ProSales 100, but as of today it now moves to the top, ahead of ProBuild with its $3.2 billion in 2009 sales. ABC's transaction, combined with new information from dealers and the Stock-Bison deal, has shaken up the ProSales 100 to the point that an updated list of the top 20 members was published in the magazine's June/July edition.
ABC Supply and Bradco
"We are excited to begin this new chapter in our history," Diane Hendricks, ABC Supply's owner, co-founder and chairman of the board, said in a statement. "ABC Supply and Bradco share a commitment to serving professional contractors. That focus makes our combined organizations a great fit, and we're confident that, together, our two companies will create enhanced opportunities for our associates and bring new benefits to our customers."
Added David Luck, ABC Supply's president and CEO: "We are working hard to ensure a smooth transition for our associates and customers alike. We are looking forward to sharing ABC Supply's residential strength with Bradco and having Bradco share their commercial strength with ABC Supply. We believe that the combined company gives us a more balanced product and service offering for our customers."
According to the 2010 ProSales 100, Beloit, Wis.-based ABC Supply had $2.68 billion in sales in 2009, 97% of them to pros, and 355 locations employing 4,865 people. It bills itself as the largest wholesale roofing distributor in the country and one of the biggest distributors of windows and siding.
Meanwhile, Avenel, N.J.-based Bradco had $1.46 billion in sales, 95% of them to pros, out of 128 locations employing 2,000 workers. It's particularly strong in commercial building supply. The Segal family, which founded Bradco, sold a majority stake in the company in July 2008 to Advent International, a private equity firm.
ABC had been No. 2, behind only ProBuild, on the ProSales 100, but as of today it now moves to the top, ahead of ProBuild with its $3.2 billion in 2009 sales. ABC's transaction, combined with new information from dealers as well as Stock Building Supply's pending acquisition of Bison Building Materials, has shaken up the ProSales 100 to the point that an updated list of the top 20 members was published in the magazine's June/July edition.
In an interview with ProSales earlier this year, ABC said it had set goals of reaching 500 locations with more than $5 billion in sales. By obtaining Bradco, the company is now well on its way toward reaching those goals. But with locations overlapping in some markets, it remains to be seen how many Bradco and ABC Supply locations will be consolidated.
Stock and Bison
Stock's acquisition with Bison combines the No. 5 and No. 16 companies on the ProSales 100 and comes a few months after Raleigh, N.C.-based Stock acquired No. 26 National Home Centers of Springdale, Ark. In all three cases, bankruptcy courts played a role. Stock filed last spring for protection from creditors under Chapter 11 of the federal bankruptcy laws last spring, one day after its former owner, Britain's Wolseley Plc, sold a majority stake to The Gores Group of Los Angeles. Based went into Chapter 11 last June 28 and has accumulated more than $5.5 million in net losses since then. National Home Centers entered Chapter 11 last December and signed an asset purchase agreement with Stock in February.
We will continue exploring intelligent growth options both in our core markets and elsewhere if opportunities arise," Stock CEO Joe Appelmann said in a statement. "This acquisition is an excellent strategic transaction for Stock and allows us to continue to transform our operating model to specifically focus on the residential construction market. The combination of Stock and Bison further strengthens our residential business in Texas. It also leverages each company's strengths and will ultimately provide an enhanced experience for our customers."
"With its acquisition by Stock, Bison is joining a financially strong company that will better support the growth of our customers in the Houston market," stated Pat Bierschwale, Bison's CEO and part of the family that founded and ran Bison since the 1960s. "This is a very favorable outcome for Bison, and we are looking forward to working with our new colleagues."
The deal adds Bison's eight Houston-area locations to the three that Stock already had in the market. Bison will operate as Bison Building Materials, a Stock Building Supply Company, with COO Tom Tolleson as the operation's leader.