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Blog
Fidelity Investments... the building Giant
July 11, 2006
You all know about Fidelity Investments, a giant in the mutual funds field. What you may not have known, until recently, that its business development arm, Fidelity Capital, is also a giant in the building supply business through its wholly owned subsidiary, Pro-Build Holdings.
In June, Pro-Build reached an agreement to purchase Hope Lumber & Supply Co., a supplier of lumber, trusses, engineered wood products, millwork, and other building materials to professional residential contractors. Hope Lumber, based in Tulsa, Okla., operates 49 yards and five truss plants in nine states in the Southeastern and South Central United States.
In 1997, Fidelity Capital purchased Strober, a small building supply firm in Brooklyn, N.Y., for $32 million, according to The Boston Globe. In 2004, Strober bought the Contractor Yard from the Lowes Companies and followed up with a second deal, according to the Globe and then earlier this year Strober bought the Lanoga Corp. of Redmond, Wash., for an undisclosed price.
Strober and Lanoga then combined to form a new company, Pro-Build Holdings. This new company’s sales are expected to hit $5 billion, according to the Globe, which also pointed out that Pro-Build has more than 14,000 employees in 38 states.
And Fidelity Capital makes it clear that they will be acquiring more companies in the future.
Meanwhile, one of its main competitors, Stock Building Supply, has been on the acquisition trail itself. Stock, which is owned by Wolseley PLC, made four acquisitions earlier this year.
Posted by Jack Keough on July 11, 2006 | Comments (0)