Building Materials: Acquisitions For US LBM, Beacon Roofing Supply

US LBM made two acquisitions in December, adding six companies, while Beacon Roofing Supply made three moves in the month, adding 26 new locations.

Two of the most top building materials distributors in the U.S. – US LBM Holdings and Beacon Roofing Supply – have been active over the past couple weeks, each announcing bolt-on acquisitions.

Green Bay, WI-based US LBM Holdings announced on Dec. 23 that it added five companies between South Dakota and Minnesota – all owned by Britton, SD-based NexGen

With the move, US LBM expands its presence in the northern U.S. by adding Truss Pro's Inc., Precision Wall Systems, Britton HOme Center, Webster Home Center, and Minnesota Building Pro's. Luke Kraft will lead NexGen as company president, with all former company owners remaining on the executive team.

According to US LBM:

  • Truss Pro's supplies roof & floor trusses, hangers, and accessories serving Minnesota and the Dakotas since 1978, with plants located in Britton, SD; Pipestone, MN; and Rogers, MN.
  • Founded in 1998, Precision Wall Systems provides wall panels from its Britton, SD and Rogers, MN facilities.
  • Minnesota Building Pros, based in Rogers, MN, is a key supplier of framing materials to general contractors in the same markets.
  • Britton Home Center and Webster Home Center provide a wide array of hardware, paint, power tools, windows, doors, cabinetry, lumber, and lawn and garden tools. They offer on‐the‐job measuring, product delivery, drafting and design services.

“We are excited to join the US LBM team,” NexGen's Kraft said. “This partnership enables us to further invest in operations and enhanced customer service. Our employees, customers and vendor partners will enjoy the myriad of opportunities for growth that US LBM can provide.”

“We’re thrilled to add these great businesses to the US LBM family,” said L.T. Gibson, President & CEO of US LBM. “By extending our products and services into the Upper Midwest, we can strategically serve the industry in that growing market. We are eager to partner with their associates and look forward to future opportunities together in the region.”

Those additions come shortly after US LBM announced on Dec. 18 that it is acquiring Beaumont, TX-based Parker's Building Supply from owner Scott Parker. Parker will continue with the company in an advisory role, while Chris Miller will take over as company president.

Parker's has 18 locations throughout Texas and four in Southern California, providing hardware, paint, power tools, windows, doors, cabinetry, lumber, building materials, and lawn and garden tools to consumers and professionals.

“US LBM is proud to have partnered with such a well-­known market leader in the South,” said US LBM's Gibson. “We will support Parker’s continued expansion efforts with new products as well as investment in locations and acquisitions. The addition of Parker’s Building Supply will make US LBM one of the largest Do it Best dealers in the country.”

Following the announced acquisitions, US LBM Holdings now has 204 locations in 26 states.

Herndon, VA-based Beacon Roofing Supply had announced a trio of moves this month. Most recently, on Tuesday it announced that it has acquired Denver, CO-based Statewide Wholesale, a distributor of residential and commercial roofing and related products.

The location, on Denver's south side, allows Beacon to better serve the area by complementing its existing locations around the city's north, northwest, and northeast metro areas.

On Dec. 18, Beacon announced it has acquired Dallas, TX-based Roofing & Insulation Supply, a distributor primarily of residential and commercial insulation along with roofing and related products with 20 branches spanning 13 states across New England, the Mid-Atlantic, the Southeast, the Upper Midwest, Texas and Colorado.

RIS has 14 branches that distribute only insulation, three branches that distribute only roofing, and three branches that distribute both. It Founded in 2000, RIS has annual sales of approximately $70 million, according to Beacon.

On Dec. 1, Beacon announced it has acquired Omaha, NE-based RCI Roofing Supply, a distributor of residential and commercial roofing and related products with five branches across Nebraska, Iowa and Colorado. Founded in 1983, RCI currently has branches in Omaha, Kearney and Lincoln, Nebraska; Council Bluffs, Iowa; and Pueblo, Colorado.

"By closing our third strategic acquisition this month, Beacon has demonstrated that it has the financial and operational capacity to build on the momentum of the RSG deal by continuing to add high-quality companies to our team. I look for that trend to continue in 2016," said Beacon CEO and President Paul Isabella following the Statewide Wholesale announcement Tuesday.

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