Former ProBuild execs form LBM company
Several former executives from ProBuild Holdings, led by former CEO Paul Hylbert, have announced their plans to form a building materials distribution company called Kodiak Building Partners.
Based in Denver, Kodiak will invest in building products companies serving new residential, repair and remodeling, and commercial construction markets across the United States, according to the announcement. The company and its investor partners are looking for businesses in the $10 million to $100 million sales range where it can support management and help grow the business. Kodiak will provide capital and strategic support to allow its operating partners to make the decisions locally, which reflect conditions in their individual markets, according to its principals.
“We believe the time is right to acquire assets in this space,” said Hylbert, Kodiak chairman and CEO. “While construction activity in general remains very weak, we believe that this business will recover and are looking to partner with strong management teams to participate in the upturn.”
Joining Hylbert at Kodiak is Steve Swinney, who will act as president and COO, as well as Kyle Barker, Brian Cleveringa and Eric Miller, who will be managing directors. Swinney is a former VP finance, planning and analysis at ProBuild. Barker, Cleveringa and Miller also worked in ProBuild’s financial division.
Last July, Kodiak purchased Barton Supply, a Colorado fabricator and distributor of structural and reinforcing steel products and accessories. The company serves both the commercial and residential markets through its general contractor, foundation and framing sub-contractor, and home builder customers from locations in Aurora, Colorado Springs and Fort Collins, Colo.
I am sure he would do well
I am sure he would do well given his strength of character. I would even have faith in him if he did something unrelated to his previous employment like alarm systems, just based on the fact that he is a rare talent.
Any venture that Paul Hylbert
Any venture that Paul Hylbert is involved in will be sucessful! His rare intelligence is matched only his great sense of teamwork. I am a better person for knowing him all those years at Sequoia Supply and PrimeSource. Ken Womack Weyerhaeuser
Texas tops the list in improving housing markets
An index by the National Association of Home Builders (NAHB) designed to track improving housing markets across the country has added nine more metro regions while dropping two cities. The November additions — Cheyenne, Wyo.; Corpus Christi, Texas; Davenport, Iowa; Fort Collins, Colo.; Hinesville, Ga.; Lima, Ohio; Monroe, La.; Tyler, Texas; and Williamsport, Pa. — raise the number from 23 to 30 metro areas.
The two cities dropped from the NAHB’s First American Improving Markets Index (IMI) in November were Iowa City and Wichita Falls. These areas experienced declines in their employment and permit data, respectively.
"Texas continues to dominate the list of improving housing markets in November, increasing its net number of entries to eight and continuing a trend in which energy-producing metros seem to be doing better than the average," said NAHB chairman Bob Nielsen, a home builder from Reno, Nev. "Meanwhile, the geographic diversity of metros also continued to expand this month, with the states of Colorado, Georgia and Ohio all represented for the first time. This is further evidence that all housing markets are uniquely dependent upon local conditions, and some are leading the way toward an eventual, broader recovery."
"The November IMI remains heavily weighted by smaller cities, with Pittsburgh and New Orleans as the only major metros represented," said NAHB chief economist David Crowe. "This is indicative of the tough conditions that continue to prevail across much of the country, particularly in larger markets that have been hit hardest by job losses and foreclosures during the recession and that will take more time to heal. However, momentum is building in pockets of the country where energy and agriculture are the dominant industries and where consistent, measurable improvements in economic conditions are now becoming apparent."
Overall, the index identifies metropolitan areas that have shown improvement for at least six months in housing permits, employment and housing prices. The following metros were listed in November:
• Alexandria, La.;
• Amarillo, Texas;
• Anchorage, Alaska;
• Bismarck, N.D.;
• Casper, Wy.;
• Cheyenne, Wy.;
• Corpus Christi, Texas;
• Davenport, Iowa;
• Fairbanks, Ark.;
• Fayetteville, N.C.;
• Fort Collins, Colo.;
• Hinesville, Ga.;
• Houma, La.;
• Jonesboro, Ark.;
• Kankakee, Ill.;
• Lima, Ohio;
• McAllen, Texas;
• Midland, Texas;
• Monroe, La.;
• New Orleans;
• Odessa, Texas;
• Pine Bluff, Ark.; and
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Boise Cascade Q3 loss narrows
Boise, Idaho-based Boise Cascade Holdings has posted a $3.7 million net loss for the third quarter ended Sept. 30, compared with a net loss of $5.6 million in the year-ago period. Sales for the quarter totaled $627.98 million, up 5.8% from $593.50 million in the third quarter of 2010.
“New single-family residential construction remained weak during the third quarter; however, we believe we are continuing to gain market share,” said CEO Tom Carlile. “We remain cautious with regard to the overall new residential construction environment and the timing of an eventual recovery in housing starts. We have good liquidity and continue to evaluate acquisition opportunities that add value, add to our market position or help lower our costs. “
Building Materials Distribution (BMD) segment sales were $501.5 million in the third quarter, up 7% from the same quarter a year ago.
Wood Products segment sales in the third quarter were $194.8 million, up 6% from the year-ago quarter.
Boise Cascade expects “below-normal demand for the products we distribute and manufacture until there is a meaningful reduction in the overhang of distressed homes for sale,” according to a company press release.
In other company news, Boise Cascade has announced its intent to purchase the assets of the Stimson Lumber Mill in Arden, Wash. The Stimson Lumber Mill processes pine and cedar into lumber and decking products. The facility will become part of Boise Cascade’s Inland Region.
The details of the transaction were not disclosed, and the company expects the purchase to close around Dec. 31.
“It is Boise Cascade’s intent to operate both the Kettle Falls Lumber operation and the Stimson Lumber Mill, although the operating configuration has yet to be finalized,” said Tom Insko, Inland Region manager. “The combination of the two mills will increase efficiencies and enhance the product mix capabilities of the Inland Region lumber operations.”
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