Builders FirstSource completes acquisition of Truss Rite
Dallas-based Builders FirstSource purchased Truss Rite, marking the company’s third acquisition of the summer.
Truss Rite, based in Sherman, Texas (about 65 miles north of Dallas), primarily manufactures wood roof and floor trusses for large multi-family and commercial projects throughout Texas and parts of Oklahoma. They predominately serve developers and general contractors in the multi-family residential housing sector. Sales were approximately $11 million for fiscal 2013, while June 2014 year-to-date sales were $9.8 million.
Commenting on the transaction, Builders FirstSource CEO, Floyd Sherman, said: "This acquisition provides us a manufactured component business in North Texas, and expands our value-add product offering within the state. Truss Rite’s focus on the multi-family market also enables us to further diversify and leverage our existing multi-family customer base in this fast-growing market. We are excited about the business’ future growth prospects and welcome the employees of Truss Rite to the Builders FirstSource family."
Current Truss Rite general manager, Randy Rice, who will lead the operation, added: "This acquisition gives Truss Rite the chance to join a well-established and financially strong leader in the construction industry. This transaction should provide a great opportunity for growth for both our business and our employees."
Builders FirstSource operates 55 distribution centers and 50 manufacturing facilities in 9 states, principally in the southern and eastern United States. Manufacturing facilities include plants that manufacture roof and floor trusses, wall panels, stairs, aluminum and vinyl windows, custom millwork and pre-hung doors.
Builders FirstSource acquires West Orange Lumber
Dallas-based Builders FirstSource has purchased West Orange Lumber Company. The deal closed on July 31, 2014. West Orange was represented by The JIAN Group of Fredericksburg, Virginia.
Groveland, Florida-based West Orange supplies lumber, roof and floor trusses, custom windows and doors, as well as installation services, to residential home builders and commercial contractors in the Central Florida region. Sales were about $15 million for fiscal 2013.
"The acquisition of West Orange provides us with an extensive customer base that includes custom and semi-custom builders, along with commercial contractors, and fits nicely within our overall growth strategy,” said Floyd Sherman, Builders FirstSource CEO. “This new location also offers onsite manufacturing capabilities of roof and floor trusses, and will allow us to more easily serve the fast growing, northern portion of the Orlando market, providing us with an excellent opportunity to significantly grow our share in this market."
John Arellano, VP of West Orange Lumber, will remain as the general manager of the operation.
Plum Creek announces strong Q2 results
Plum Creek Timber reported second-quarter earnings of $55 million, up 20% from $46 million in the year-ago period. Revenues totaled $356 million, up 17% from revenues of $303 million in the second quarter of 2013.
Earnings for the first six months of 2014 were $85 million, down 17% from $102 million in the same period in 2013. Revenues for the first six months were $673 million, up 5% from $643 million.
“Our second-quarter results were much as we anticipated despite lower-than-planned harvest volumes in the South,” said Rick Holley, Plum Creek’s CEO. “So far this year, the operating income and cash flow from our timber resources segments are up nearly 30% due to improving log prices and the additional harvest from the lands we acquired in December.
“Our Real Estate segment continues to perform as expected and our Manufacturing segment is on track to deliver a strong performance in 2014. Our Energy and Natural Resources segment results have grown too, as the assets we acquired over the past year are providing attractive cash-on-cash returns for our shareholders.”
The company has revised its earnings outlook for 2014 to reflect lower harvest volumes, expectations for slower log price growth and the anticipated composition of real estate transactions in the second half of the year. The company now expects 2014 income to be between $1.05 and $1.25 per share, and third quarter income between $0.27 and $0.32 per share.