Acquisition for M-D Building Products
Oklahoma City-based M-D Building Products has acquired the assets of Seattle-based Morse Industries, bringing additional diversification to the maker of weatherization, flooring and installation products. With Morse, M-D gains a portfolio of solutions in railing, shower and architectural metals.
“The Morse acquisition reinforces M-D as an industry consolidator seeking to complement our existing growth strategy as we continue to diversify and expand into new markets,” said Loren Plotkin, chairman and president of M-D Building Products. “After meeting with the Morse team, it didn’t take long to determine it was in the best interest of both companies to consider an acquisition.”
Founded in 1982, Morse is a family operated company providing industry professionals working solutions in railing, shower and architectural metals. The acquisition includes three facilities as well as an international distribution system servicing North America, Europe and the Pacific Rim.
Plotkin continued, “Morse is an ideal fit for M-D. Both companies are privately held family owned and operated and share similar values. The bringing together of these two companies expands our product portfolio, increases our manufacturing capabilities, adds distribution centers and opens new markets. We view the acquisition of Morse as a driver of long-term growth.”
Morse Industries operates three distribution facilities in the United States, serving North America, Europe and the Pacific Rim. Morse specializes in the customized commercial railing, shower, architectural metals, extrusions, slide tracks and marine products.
Morse has national operations including distribution facilities in Kent, Wash.; Brea, Calif.; and Indian Trail, N.C. M-D Building Products operates multiple manufacturing sites across the United States and Canada. Terry Morse will continue in his role as CEO of Morse.
Remodeling continues to surge
The National Association of Home Builders’ Remodeling Market Index posted a reading of 60 in the fourth quarter of 2017, up three points from the previous quarter and only the second time since 2001 the reading has reached 60, the NAHB reported.
“At a high of 60, the RMI is consistent with the strong growth in home improvement spending in 2017,” NAHB chief economist Robert Dietz said. “However, the surge in the backlog of remodeling jobs likely reflects supply-side challenges remodelers are facing in the form of skilled labor shortages and rising material prices.”
The RMI has been at or above 50 for 19 consecutive quarters, which indicates that more remodelers report market activity is higher compared to the prior quarter than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity.
“A booming stock market and low unemployment continue to fuel consumers’ investment in their homes,” said NAHB remodelers chair Joanne Theunissen, a remodeler from Mt. Pleasant, Mich. “Natural disaster-related repairs also caused strong demand for maintenance and repair projects.”
Current market conditions increased four points from the third quarter of 2017 to 60. Among its three major components, major additions and alterations jumped seven points to 60, minor additions and alterations increased three points to 59, and the home maintenance and repair component rose three points to 61, the NAHB said.
The future market indicators index rose one point from the previous quarter to 59. Calls for bids decreased two points to 56, amount of work committed for the next three months rose two points to 58, the backlog of remodeling jobs gained a significant six points to 66, and appointments for proposals fell two points to 57.