Builders FirstSource (BFS) entered a definitive agreement to acquire Cornerstone Building Alliance SW, LLC (Alliance) for approximately $400 million, subject to closing adjustments. Alliance is an independently-operated supplier of building materials based in Arizona, primarily serving the greater Phoenix, Tucson, and Prescott Valley metro area.
“This acquisition is aligned with our strategy of investing organically and through M&A, to shift our portfolio toward high-value and faster-growth categories,” Dave Flitman, president and CEO of BFS, said in a prepared statement. “Alliance’s service represents the third largest single-family market and includes the fastest growing county, Maricopa, in the country. Alliance’s geographic footprint represents an excellent strategic fit, with a limited overlap of our existing geographic coverage that enables us to expand our product lines across various end markets.”
According to BFS, Alliance is uniquely positioned to offer unmatched distribution throughout the highest-growth regions of Arizona with a comprehensive portfolio of premium building materials.
“This transaction provides incredible opportunities for our customers and employees,” True Carr, managing partner of Alliance, said in a news release. “We have grown this business into an industry leader and joining the BFS family is a clear win for all stakeholders, representing the next chapter in Alliance’s successful journey. We are thrilled to continue to provide exceptional products and services to our customers as part of BFS.”
Carr will continue with BFS post-acquisition. Alliance reported trailing twelve month sales of approximately $330 million as of April 2021.
“Building upon the success of the BMC merger, we will be opportunistic in pursuing value-enhancing investments, such as Alliance, that align with our culture, value-added product focus, and high return thresholds,” Filtman said. “True Carr has built a fantastic company with a very strong leadership team and a culture of growth and outstanding customer service that aligns well with the Builders FirstSource culture.”
Dallas-based BFS operates in 40 states with approximately 550 locations and has a market presence in 47 of the top 50 and 86 of the top 100 MSAs. The company provides value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork and pre-hung doors. BFS also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other building products. The company completed its merger with BMC in January and acquired Michigan-based John’s Lumber.
