Abbeville, Ala.-based Great Southern Wood Preserving formed an alliance with specialty building materials distributor U.S. Lumber Group.
Under the new alliance, an affiliate of Great Southern will become a minority investor in U.S. Lumber and customers of both companies will leverage the benefits of increased volume purchasing and sharing of "best practices." No jobs will be adversely affected, nor are management changes anticipated, the companies announced.
The move is designed to expand the geographic distribution footprint of both companies, give customers the benefit of new economies of scale, and create new growth momentum, the companies announced.
The alignment was further described as a "innovative marketing and operations model."
"This is an exciting development for both companies, our employees and customers," said Jimmy Rane, chairman, president and CEO of Great Southern Wood Preserving. "It will create a vehicle for growth at a time when the economy in general and new housing starts in particular continue to struggle."
Great Southern will gain new markets for its YellaWood brand products through U. S. Lumber's distribution network, expanding in mid-Atlantic states. At the same time, U. S. Lumber will widen its reach by making its broad range of specialty products available in Great Southern's extensive dealer base in the Midwest, Southwest and the Caribbean.