Privately held ProBuild runs lumberyards, component facilities, millwork shops, gypsum yards and retail stores across 40 states. The Denver company's 2014 revenue was approximately $4.5 billion. The acquisition, expected to close in the second half of 2015. The combined company will have greater geographic reach and a broader portfolio of products that include lumber, windows, doors, and hardware.
Dallas-based Builders FirstSource is a supplier and maker of structural and related building products for new residential construction in the U.S. CEO Floyd Sherman will serve as CEO of the combined company.
"We are very pleased to announce this compelling combination with ProBuild to create a more diversified company with enhanced scale and an improved geographic footprint that will drive significant value for our customers and stockholders," Sherman said. "As the U.S. housing market continues its recovery, we believe now is the ideal time to position Builders FirstSource for its next phase of growth and value creation. Together we will establish a broader, more efficient platform of manufacturing and distribution capabilities, supported by high-quality service from the best talent in the industry."
Chad Crow will serve as chief financial officer, while ProBuild chief executive officer Robert Marchbank will continue as part of the ProBuild leadership team to support integration planning and ensure a smooth transition. Builders FirstSource said that over the coming months, additional announcements will be made regarding the combined company's senior leadership team, which will be composed of leaders from both companies.