ABS adds another ProBuild veteran
American Builders Supply (ABS), an independent supplier of doors, windows and trusses to home builders in Florida, has appointed Ben Phillips to its board of directors. Phillips was most recently the chief operating officer at Fidelity Devonshire Investors, part of Fidelity Capital, the parent company of ProBuild. Before that, he spent several years at ProBuild, serving as executive VP and chief operating officer.
Phillips’s earlier experience included stints as CEO of Phillips Group; CEO, southeastern region, Builders FirstSource; and CEO of Pelican Companies. He began his career at Lowe’s when the home improvement retailer was a chain of regional lumberyards.
“We are delighted to add Ben as a board member,” said Bill Myrick, CEO of ABS, in the announcement. “His leadership abilities and financial and operations experience will help us ensure our future growth."
Earlier this month, Myrick, the former CEO of ProBuild, hired Mark Garboski as VP operations. Garboski previously served as ProBuild’s VP shared services.
Growing dealers team with BlueTarp
Portland, Maine-based BlueTarp Financial entered into new credit-program partnerships with McKenzie Building Center in Watford City, N.D., and Builders Warehouse in Denver entered into partnerships with Portland, Maine-based BlueTarp Financial.
Both McKenzie Building Center and Builders Warehouse are now collaborating with BlueTarp on customized in-house financial programs. The programs bring guaranteed cash flow, risk reduction of contractor payments and marketing services that will help increase sales. The credit lines will streamline transactions and improve store connections with contractors, according to BlueTarp.
Strong growth for both companies factored into the decisions for both companies.
"Here in Watford City, we are located in the middle of the current oil boom happening in North Dakota,” said McKenzie Building Center CEO Eric Sparrow, whose company has seen a 300% increase in sales over each of the past two years. “As our local population continues to grow, so does the demand for materials to build affordable housing. I wanted to make sure that as a company, we had a professional organization making the credit decisions for us, and the ability to offer large lines to meet the needs of our customers."
"Our decision to partner with BlueTarp was simple — growth,” said Builders Warehouse owner Myron Andersen. “By entering into this partnership, we have put ourselves in a position to keep up with the increasing demand for building materials from the contractors we serve."
BlueLinx sells California DC
Building materials distributor BlueLinx has announced the sale of its distribution center in Newark, Calif., in a Sept. 20 filing with the Securities and Exchange Commission (SEC). The 235,000-sq.-ft. warehouse sold for approximately $17.7 million.
The Atlanta-based company expects to record a gain of approximately $9.1 million related to this transaction in the third quarter of 2012 as a reduction of operating expense. Approximately $12.84 million of the net proceeds will be used for immediate prepayment of the indebtedness under its mortgage agreement without incurring a prepayment premium. About $2.76 million of the net proceeds will be used for general corporate purposes.
The SEC filing did not disclose the name of the buyer.
In a press release, Blue Linx said the sale would strengthen its balance sheet and position the company better for strategic growth. “We plan to relocate in the surrounding area by the end of the year to continue serving the Northern California market," said BlueLinx CFO Doug Goforth.