Former Stock executives form LBM holding company
Former Stock Building Supply executives Fenton Hord and Steve Short are among the industry veterans behind Cornerstone Building Alliance, LLC, a new holding company looking to invest in distributors, manufacturers and installers.
Cornerstone’s leadership team includes president and CEO Steve Short, former Stock Building Supply COO, and Fenton Hord, longtime president and CEO of Stock and current Board Member of Investors Management Corporation (IMC), Cornerstone’s parent company.
“The timing for Cornerstone is outstanding,” said Short. “The building materials industry has suffered through the worst housing depression in history. Many good businesses have survived and are in need of a partner such as Cornerstone to take advantage of the opportunities a recovering market will present.”
Cornerstone targets companies with annual revenues of $10 million to more than $100 million, including one-step manufacturers, distributors and installers of dimensional lumber, engineered wood, roof and floor trusses, wall panels, sidings, windows, exterior doors and millwork, roofing, drywall, interior doors and millwork, cabinets and countertops. The Raleigh, N.C.-based company expects to maintain local and regional brands, keep management teams in place and offer them operating autonomy.
While Cornerstone requires a majority position, they want management teams to retain ownership in the company. “This allows our partners to financially participate in the recovery of the market and the success of the business. It also encourages them to continue making the best long-term decisions,” Short added.
Hord grew Stock from seven locations with $98 million in sales in 1987 to more than 350 locations with more than $5 billion in sales via 68 acquisitions when he retired in 2007. “We know the business, we like the business and we’re excited about the prospects Cornerstone brings to the industry,” said Hord.
New-home sales continue to grow
Sales of new single-family houses in July 2012 rose 3.6% over the previous month, with a seasonally adjusted estimate of 372,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
This compares with a July 2011 estimate of 297,000, a jump of 25.3%.
The median sales price of new houses sold in July 2012 was $224,200; the average sales price was $263,200. The seasonally adjusted estimate of new houses for sale at the end of July was 142,000, a record low. This represents a supply of 4.6 months at the current sales rate.
Sales were up in the Northeast and Midwest by 76.5% and 7.7%, respectively. In the South, new-home sales dropped 1.6% in month-over-month figures. In the West, the sales decline was 0.9%.
Quikrete announces ‘What America’s Made Of’ winners
Quikrete, a manufacturer of packaged concrete products for the building and home improvement markets, has announced the six winners of the Quikrete “What America’s Made Of” sweepstakes. The winners, who entered the contest at DannyLipford.com, each received a copy of the "Quikrete Guide to Concrete" book and up to $599 in Quikrete products to help build a patio, BBQ fire pit, walkway or outdoor kitchen.
The winners are:
• Wendy Langhoff, Kimball, Mich.
• Gregory Williams, Cincinnati
• Ronni Fox, Buffalo, N.Y.
• Mike Perkins, Phoenix
• Joy Bennett, Harlingen, Texas
• Patio — Crack-Resistant Concrete Mix, Cure & Seal and Liquid Color
• BBQ Fire Pit Kit — Pavestone blocks, caps, insert ring, grate, sand and construction adhesive
• Walkway — WalkMaker Form, Crack-Resistant Concrete Mix, Liquid Color, PowerLoc and Jointing Sand
• Outdoor Kitchen — Mason Mix, QuikWall, Countertop Mix, Liquid Color, Cure & Seal and Guide to Concrete book