2017 has been a busy year for dealers, and it’s evident the construction supply industry is trending upwards. Across the country, there have been 68 openings, closures, and acquisitions involving 112 locations, the vast majority of which have been either openings or acquisitions. (Click here for an interactive version of the map).
Though there have not been any mega deals so far, like ABC’s record acquisition of all 146 locations of USG’s L&W Supply last year, the industry is experiencing a period of solid, consistent growth. As of July 12, there have been 18 acquisitions (accounting for 62 total locations), 31 openings and just 19 closings. Some companies on the forefront of this boom are…
1. Beacon Roofing
So far, Beacon has added 17 new locations through acquisitions, already matching its number from a year ago. Early in January, Beacon acquired American Building & Roofing Inc., based in Washington State, which accounted for seven locations. In May, Beacon made another acquisition, as it added Lowry’s Specialty Distribution, which brought in 11 new locations throughout the California, Arizona, Utah, and Hawaii markets.
2. SRS Distribution
Business for SRS is also booming, as it has made two major acquisitions and opened seven new locations. In April, SRS opened locations in Norfolk, Va., Charlotte, N.C., and Alpharetta, Ga. Later in April, it acquired 8 locations from Kohl Building Products, a Pennsylvania-based firm which offers a wide range of building materials. In June, SRS made a splash in the Southern California market, acquiring 5 locations from SG Wholesale Roofing. Four more locations were opened in July, as the firm expanded into Durham, N.C., Laredo, Texas, Port Richey, Fla., and Joliett, Ill. SRS has also matched its number of new locations from a year ago, as it opened 16 new locations in 2016 (7 new openings, 9 through acquisitions).
So far, the roofing industry seems to be leading the way through 2017. The 18 acquisitions in the country so far have resulted in 62 new locations for some bigger firms. Acquisitions made by Beacon and SRS account for over 50% of those new locations. Though roofing firms have been the big players in the first part of the year, lumber companies are also making significant moves.
US LBM acquired Rideout Lumber in February, which has 10 locations total (9 in Arkansas, 1 in Missouri). National Lumber made a sizeable deal as well, acquiring Babel’s Paint and Decorating in January. Babel’s Paint had 5 locations across Massachusetts.
One of the most intriguing deals of the year came out of North Carolina, when Professional Builder’s Supply (four locations in Raleigh, Charlotte, Wilmington and Charleston) was acquired by the Capitol Broadcasting Company. CBC owns the Durham Bulls, The American Tobacco Historic District and several radio and television stations, but doesn’t own any other LBM operations.
