Carter Lumber hires new exec, realigns divisions
Carter Lumber, the Kent, Ohio, pro dealer, has announced a change in its field management structure that will consolidate the stores in its largest division under two regional VPs. The company has also hired Harry Streyle, a 30-year veteran of the LBM industry, as a district manager.
In the Carter Lumber division, all stores have been split into two regions that will be managed by regional VPs Kip Gleckler and Al Price. A new unit has been formed to serve the Columbus, Ohio, market, drawing from the Holmes Lumber and Carter Lumber divisions. This team will operate under the Holmes Lumber name and will work out of three existing Carter Lumber facilities in Plain City, Sunbury and Reynoldsburg. Will Ruschman (former district manager of Columbus) will fill the newly created position of Columbus market general manager for these stores and will report to Steve Miller, VP of Holmes Lumber.
All six retail divisions will continue to operate under their original brands. Carter Lumber hopes to expand its presence along the Eastern seaboard, where former ProBuild executive Streyle will focus on growing market share in the Pittsburgh, Maryland and Virginia markets.
Streyle worked as an area VP for 84 Lumber when ProBuild hired him in the fall of 2010 as part of its move into western Pennsylvania. Streyle’s other positions have included regional VP and sales and marketing VP. In his new role, he will report to Kip Gleckler.
Cornerstone moves into Arizona
Cornerstone Building Alliance, a newly formed holding company co-founded by former Stock Building Supply executives, has added ALC Holding (ALC), Arizona’s largest building materials distributor, to its portfolio. The investment includes Alliance Lumber, Alliance Truss, Arizona Structural Laminators (ASL), Core Materials Distribution and ALC Transportation.
Cornerstone’s leadership team includes president and CEO Steve Short, who served as Stock’s chief operating officer, and Fenton Hord, Stock’s longtime president and CEO. In a prepared statement, Short described ALC, which is based in Phoenix, as Cornerstone’s new “platform” in Arizona.
“Alliance is the leading distributor in a top five housing market,” Short said. “Phoenix and Arizona, which clearly suffered significant downturns, have done a remarkable job of working through their distressed housing problems and are now well positioned to rebound. Our investment positions the business to strategically capitalize on the market recovery both organically and acquisitively. Alliance is a strong, healthy company with a deep and seasoned team. We look forward to a long, mutually beneficial partnership.”
True Carr, president and CEO of ALC Holding, said in a prepared statement: “The combination of Cornerstone and Alliance creates a partnership that is well positioned to capitalize on the future growth of our market. Cornerstone’s significant cash investment in Alliance, along with the additional resources and support this partnership provides, will benefit our customers, employees and shareholders.”
Eagle acquires two Lafarge plants
Eagle Materials, a major cement and gypsum supplier, agreed to buy cement plants and a variety of related businesses from Lafarge North America.
The purchase price of $446 million is expected to be funded primarily by borrowings under Eagle’s existing bank credit facility, with the remainder funded by the proceeds of an equity offering, the company said.
Under the deal, Eagle Materials will acquire Lafarge’s Sugar Creek, Mo., and Tulsa, Okla., cement plants. It will also take over six distribution terminals, two aggregate quarries, eight ready-mix concrete plants and a fly ash business.
Eagle will also enter into a transition sales agreement to supply certain Lafarge operations with cement for four to five years, and an agreement with a Lafarge affiliate to supply low-cost alternative fuels to the acquired operations.
The acquisition will increase Eagle’s U.S. cement capacity by roughly 60%, the company said.
The transaction is expected to close in November or December 2012, pending regulatory approvals.
“Our stated strategy has been to grow the cement and aggregates side of our business,” said Steven Rowley, Eagle Materials president and CEO. “Our first priority has been to acquire cement plants that connect but do not overlap with the market reach of our existing plants. These two high-quality Lafarge cement plants are a compelling fit with our objectives — and the transaction meets our stringent criteria for new investment.”
Eagle had net sales of $495 million in 2012, 31% of which was in the cement business.