The third- and seventh-biggest companies on the ProSales 100 soon may be one. Beacon Roofing Supply is in the process of acquiring Allied Building Products from Ireland’s CRH plc for $2.62 billion in (largely borrowed) cash.
The resulting behemoth definitely shakes up the competitive market for sales of roofing products and drywall. If you’re a specialty dealer who has been waiting to sell to a conglomerate, this deal is likely to make Beacon a much less willing buyer, analysts say.
Meanwhile, experts believe the Beacon–Allied deal will have an impact on lumberyards, too. Jason Fraler, managing partner at Anchor Peabody, says some major roofing companies have been spending more time courting the lumberyard community because so much consolidation has been taking place among roofing suppliers. “For years, lumberyards have been somewhat ignored,” he says. “Now … manufacturers need to sell to the lumberyard segment.”
The late summer also saw the following LBM deals and announcements:
Canada’s CanWel Building Materials Group purchased Honsador Group, Hawaii’s biggest lumberyard and the 39th-biggest company on the ProSales 100.
Koopman Lumber, No. 60 on the ProSales 100, announced a merger with Doyle Lumber Co., which has seven yards in Massachusetts.
Ring’s End acquired Tuxis Lumber and will make it the Connecticut-based dealer’s eighth full-service lumberyard.
U.S. Lumber Group will buy NILCO and operate it under that name as a separate division of the building products distributor. The move essentially expands U.S. Lumber into the Midwest.
JELD-WEN announced the acquisition of Milliken Millwork (also known as MMI Door), a maker of doors and related products with locations in Pennsylvania, Ohio, and Michigan.
BMC announced it will open its new, 30-acre manufacturing facility in Woodland, Calif., on Oct. 31. The facility will boost BMC’s capabilities to serve Northern California.
US LBM swung to a $2.5 million profit in the second quarter from a $7.8 million loss in the year-earlier period, thanks in part to an 18.6% gain in revenue, to $803.8 million, America’s fifth-biggest ProSales 100 company indicated in a report that’s part of its plans to become a publicly traded company.
