Builders FirstSource completes Raney acquisition

12/10/2019
Builders FirstSource announced that it has purchased the assets of Raney Components LLC and Raney Construction, Inc.

Based in Groveland, Fla., and founded in 1997, Raney has annual revenue of approximately $140 million.

Raney provides a vertically-integrated manufacturing and installation model which significantly improves labor productivity and reduces cycle times for customers. Through a value-added approach, Raney supplies wall panels, roof trusses, roof decking, interior wall framing along with building materials and then partners with sub-contractors to install these products in approximately 3,000 homes per year to its production builder customers across Florida.

“I am thrilled to welcome Buddy Raney and his entire team of employees into the Builders FirstSource family. Raney has been an innovator in our industry in working toward fast and efficient homebuilding by combining the supply of materials with off-site manufacturing to control and accelerate the construction schedule. Their success has been driven by reducing cycle times and increasing labor efficiency, helping to alleviate industry-wide home affordability constraints. This acquisition not only strengthens our leadership position in Florida, but also provides us with a new vertically-integrated value-added service capability within our company’s next-generation growth strategy,” said Chad Crow, CEO of Builders FirstSource.

Buddy Raney, the founder and CEO of the Raney businesses, said, “Raney is built on the core values of quality, customer service, performance, and safety. Builders FirstSource believes in our business model and provides an exceptional fit through its scale and resources to fuel the next chapter of our growth. I’m proud to join forces with Builders FirstSource and excited about what the future holds for the Raney team.”

Terms of the deal were not disclosed. HBSDealer first reported about Builders FirstSource’s acquisition of Raney on Dec. 5.

“Raney is our fourth tuck-in acquisition of 2019, which together provide over $200 million in annual value-added net sales,” Crow said. “As homebuilding becomes more sophisticated, we are focused on expanding our ability to partner and integrate with customers to streamline the construction process. This acquisition marks our entry into vertically integrated manufacturing. We will continue to pursue acquisitions that drive construction efficiency and enhance our customer value proposition.”

Based in Dallas, Texas, Builders FirstSource operates nearly 400 locations in 40 states and has a presence in 77 of the top 100 metro markets. At the end of October, Builders FirstSource reportethird quarter net sales declined 6.5% to $1.98 million while its net income increased 6.5% to $78.1 million.

 
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