Cedar Creek to buy Epperson Lumber
Oklahoma City-based distributor Cedar Creek will purchase distribution company Epperson Lumber of Statesville, N.C.
The two companies signed a "letter of intent" for the deal, expected to close in about 60 days.
Located near Charlotte, N.C., Epperson Lumber’s sales coverage area ranges East along the coast of the Carolinas; South to Charleston, S.C.; North to Richmond, Va.; and West to Knoxville, Tenn.
Bill Adams, CEO of Cedar Creek, said, “This acquisition underscores our commitment to growing the footprint of Cedar Creek and opening new markets. We view this as a great opportunity to increase our presence outside of our traditional mid-South markets and enter what’s forecasted to be one of the best growth areas in the country.”
Cedar Creek is a wholesale building material distribution company with 11 locations covering 12 states in the mid-South and Midwest. In May 2010, it was recapitalized by Boston-based Charlesbank Capital Partners, with the goal of providing flexible capital for the company to grow beyond its current trade areas.
In Canada, Richelieu Hardware continues acquisition streak
Richelieu Hardware closed on two more acquisitions, bringing to nine the number of businesses acquired since the beginning of 2010.
The two latest acquisitions involve Madico Distribution, a Canadian distributor of floor protection products, and Provincial Woodproducts.
Madico develops and distributes specialty products under the well-known Feltac, Feltac Ultra, Slidex, Anti-Skid, Solid Wood Ultra Cups and Pro-tec-tors brands. This company serves a large customer base of hardware retailers and renovation superstores, mainly in Canada and also in the United States. This acquisition represents additional sales of approximately $5 million on an annualized basis.
Richelieu also closed on the acquisition of 85% of the shares of Provincial Woodproducts, a distributor of hardware, finishing products, panels and hardwood floors benefiting. Through Provincial, Richelieu reinforces its presence in Newfoundland and covers the entire Canadian market.
Richelieu is a distributor, importer and manufacturer of specialty hardware and complementary products.
Federal government issues new drywall findings
The U.S. Consumer Product Safety Commission (CPSC) and the Department of Housing and Urban Development (HUD) issued updated “remediation protocol” on March 18 to consumers and contractors dealing with problem drywall.
A study conducted on behalf of CPSC by Sandia National Laboratories in New Mexico found no evidence of a safety hazard to home electrical systems, the announcement said. Based on this study, the CPSC and HUD are no longer recommending the removal of all electrical wiring in homes with problem drywall. This change in the government’s protocol may reduce the cost of remediation for many homes.
After simulating more than 40 years of corrosive conditions that could exist in problem drywall homes, Sandia staff did not observe any acute or long-term electrical safety events, such as smoking or fire. Corrosion and blackening of the exposed electrical components did occur and was observed to be consistent with the characteristic corrosion reported to CPSC by thousands of consumers. Based on this study, it is the belief of the staffs of CPSC, HUD and Sandia that long-term exposure of wiring and other electrical components to hydrogen sulfide gases does not indicate a safety hazard to a home’s electrical systems.
With these changes, the remediation guidance for homes with problem drywall calls for the replacement of all:
• problem drywall;
• fire safety alarm devices, including smoke and carbon monoxide alarms; and
• electrical distribution components, including receptacles, switches and circuit breakers.
The CPSC and HUD staffs are also issuing an updated identification guidance, which broadens the range of installation years of affected homes to include homes where drywall was installed as late as 2009. Importantly, the drywall installed in 2009 had been previously imported during the years 2006 to 2007 and does not represent any new importation of problem drywall.
For additional findings from the Interagency Drywall Task Force’s investigation, visit DrywallResponse.gov.