News

Beacon lights up acquisition scene, again

BY HBSDEALER Staff

Beacon added two new companies to its roster in July: Structural Materials Co. in Southern California and Contractors Roofing & Supply Co. in St. Louis.

The appetite for acquisition remains unsated.

“We are confident that we will add other quality companies in the near future that fit our target acquisition profile,” said CEO Paul Isabella during Beacon’s third-quarter earnings call.

If the past is any indicator, that profile includes such companies as Cassady Pierce, Fowler & Peth and Nova Scotia-based The Roofing Connection, acquired in May 2012, November 2011 and October 2011, respectively.

Beacon’s third-quarter sales of $560.5 million — although up 3.7% — were hurt by lower non-residential roofing activity and less residential roofing activity in the markets affected by last spring’s hail storms, partially offset by the benefit of higher average selling prices.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

How much credit should be given to the co-op business model for the success of the independent hardware and building supply dealer over the last half century?
News

Following up: Fenton Hord takes stock of LBM industry

BY HBSDEALER Staff

Fenton Hord had a huge run at the helm of Stock Building Supply. 

In 1987 he oversaw a seven-unit, $98 million pro dealer. When Hord retired in 2007, Stock was a 350-location, $5 billion “North American Super Power.”

Of course, when the housing starts dried up, Stock remained in the headlines with a well-documented run of bankruptcy and reorganization.

Even today Horde is optimistic about the LBM business. And that’s exactly where his latest venture is looking to put its money.

Late last month, Investors Management Corp., of which Hord is a board member, formed Cornerstone Building Alliance, with former Stock COO Steve Short at the helm. The investment company will target distributors, manufacturers and installers in the $10 million to $100 million-plus range.

“We know the business, we like the business, and we’re excited about the prospects Cornerstone brings to the industry,” Hord said.

The investment strategy calls for a majority position, with management teams to retain minority ownership. “This allows our partners to financially participate in the recovery of the market and the success of the business,” Short said.

The newly formed company’s next acquisition will be its first. “Stay tuned,” Short said.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

How much credit should be given to the co-op business model for the success of the independent hardware and building supply dealer over the last half century?
News

D.C. Hotline: Senate Finance Committee approves 25C extension

BY HBSDEALER Staff

By Ben Gann, director of legislative affairs, NLBMDA

On Aug. 2, by a 19-5 vote, the Senate Committee on Finance approved legislation to continue dozens of expired or soon-to-expire tax breaks known as “tax extenders” through 2013, including the residential energy efficiency (25C) tax credit. The proposal was not supported by five of the committee’s 11 Republicans.

The committee approved the measure after many of the more than 100 amendments to the legislation were not offered. Sen. Olympia Snowe (R-Maine) had proposed two amendments seeking to strike the extension of the 25C tax credit and replace it with an incentive program linked to the way an entire house performs, but those amendments were withdrawn. During the markup, the committee expressed support for drawing up a comprehensive tax overhaul next year that would include broadening the tax base and phasing out energy tax credits.

The 25C tax credit first took effect in 2006 and was increased for 2009 and 2010. The credit was reduced for 2011 and expired at the beginning of this year. Although the reduced amounts are not as beneficial to homeowners, they still provide an incentive for homeowners wanting to make energy-efficient improvements.

The House Committee on Ways and Means is conducting its own examination of tax extenders, and a final agreement is not expected to be reached until the lame-duck session after the November elections. NLBMDA supports extending the 25C tax credit and will continue working with Congress on an extension.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

How much credit should be given to the co-op business model for the success of the independent hardware and building supply dealer over the last half century?