A new LBM platform sets sights on West Coast dealers

With a recapitalized Homewood Lumber as a springboard, a new entity called Homewood Holdings will attempt to build a regional LBM pro dealer organization in California and the Pacific Northwest.

Behind the new company are building supply veteran Jim Stockman, with 34 years experience in the industry; and Building Industry Partners, the investment company that helped bring about US LBM Holdings, Kodiak Building Partners and Rugby Architectural Building Products.

The recapitalization of Homewood Lumber marks the first investment for the new Homewood Holdings, described as a "regional LBM platform." The deal was made in partnership with the founders of the lumberyard. Homewood Lumber is a three-unit dealer serving the greater Sacramento, California, market. It was founded in 1990 by the Noorani family.

 According to the press release announcing the deal, the recapitalization transaction addressed the Noorani family’s succession planning needs for the business. Hamid Noorani retires post-transaction after 26 years with the business, but he remains an advisor and retains a meaningful financial interest in Homewood. Adam Noorani remains in management and as a shareholder in Homewood. 

The debut acquisition is just the beginning, the company said. Homewood Holdings announced that it is actively seeking to partner with or acquire additional independent pro dealer organizations throughout California and the Pacific Northwest.

Leading up that effort will be Jim Stockman, named president & CEO of Homewood Holdings. Stockman most recently led the Northern California-based, six-location pro dealer division of Pacific Coast Building Products, a $1 billion-plus building products distribution/manufacturing conglomerate. Previously, Stockman led the Southern California operations of Stock Building Supply (formerly Terry Lumber), directing 25 operating units throughout Southern CA and growing the business from $300 million to $650 million in sales over four years. He had worked for Terry Lumber in various operating and management capacities for nearly 20 years before taking its helm. Stockman also served as Chief Operating Officer and Vice President of Hayward Lumber, an independent, multi-location LBM supplier on the central coast of California.

"My goal and vision is to bring fresh energy and enhanced values to the team, as well as establish business disciplines and processes allowing us to optimize our service levels, grow the business and expand into new markets, creating abundant opportunities for growth and advancement for our people," Stockman said, in a prepared statement

Homewood Holdings represents BIP principals’ fourth platform investment in the building products distribution industry since 2009, after co-founding U.S. LBM Holdings and sponsoring Kodiak Building Partners and Rugby Architectural Building Products.

“We are excited about the formation of our new LBM platform and its inaugural investment in Homewood Lumber," said Zachary Coopersmith, managing partner of BIP.

He added: "We saw a fundamentally compelling business, and given its founder’s imminent retirement, an opportunity to inject new leadership, significant capital resources, long-term vision and a plan to build a best-in-class customer value proposition at a place where people love to come to work.”