Homewood Holdings acquires Building Supply and Lumber Co.
The Sacramento pro dealer serves customers throughout Northern California.
Homewood Holdings, LLC, a portfolio company of private equity investment firm Building Industry Partners (BIP), has acquired Building Supply and Lumber Co., Inc.
Founded in 1946, Building Supply and Lumber is an independent pro dealer based in Sacramento serving customers throughout Northern California.
Building Supply and Lumber is the third business acquired under the Homewood Holdings umbrella, since the formation of Homewood Holdings in early 2016 by BIP and building industry veteran, Jim Stockman.
Building Supply and Lumber’s former owner, Stan McMaster, will work with Homewood as a consultant to continue servicing the Northern California LBM market and help grow Homewood’s market share in the pro dealer segment. The transaction enables McCaster to transition into retirement, following a long and successful career spent building one of the area’s leading LBM distributors, BIP said.
In addition to Building Supply and Lumber, Homewood Holdings consists of Homewood Building Supply, based in greater Sacramento, Calif., and Evergreen Lumber, based in greater Seattle, Wa.
Jim Stockman, CEO of Homewood Holdings, commented, “We’ve known and respected Stan for many years, and this acquisition helps accelerate Homewood’s growth plan and adds highly valuable customer relationships to our organization.”
Homewood Holdings also said that it is actively seeking to partner with, or acquire, additional strong independent pro dealer organizations throughout California and the Pacific Northwest.
Founded in 2008, BIP is run by managing partners Matt Ogden and Zach Coopersmith. BIP principals have co-founded and served as the equity capital sponsor for a number of the building products industry’s leading middle-market companies and operators including U.S. LBM, Kodiak Building Partners, U.S. Fence Solutions, and United Cabinet Holdings, among others.
Masonite posts mixed Q3 results
Price increases were not enough to offset rising manufacturing costs.
Masonite reported that third quarter 2018 sales increased 8% to $557 million compared to third quarter 2017 net sales of $518 million.
Excluding foreign exchange, net sales increased 9%, the door manufacturer said.
Net income attributable to Masonite for the third quarter was $25 million, down 16% compared to $29 million for the same period a year ago. The decline was primarily due to a loss on the extinguishment of debt.
“We delivered another quarter of year on year sales growth, due again to strong performance from our acquisitions and higher average unit prices,” said Fred Lynch, president and CEO of Masonite. “However, in the third quarter, the benefit from previous price increases was not enough to fully cover rising costs. Our team continues to pursue multiple strategies to improve margins despite a strong inflationary environment.”
The Tampa, Fla.-based company’s increase in net sales for the quarter was the result of a 7% increase in volume from acquisitions and a 4% increase in average unit price, partially offset by a 3% decrease in base volumes and other components and a 1% decrease from foreign exchange, Masonite said.
North American residential net sales were $368 million, a 1% increase over the third quarter of 2017, while Europe net sales were up 22% to $91 million. Architectural net sales were $92 million, up 25% increase from the third quarter of 2017. The 2018 acquisition of Graham & Maiman and the 2017 acquisition of A&F Wood Products combined to contribute 26% of incremental net sales.
James Hardie appoints independent director
Anne Lloyd served as CFO of aggregates supplier Marietta Materials.
James Hardie Industries plc, the fiber cement building products manufacturer, has appointed Anne Lloyd as an independent nonexecutive director of the company.
Lloyd served as chief financial officer of Martin Marietta Materials, Inc. a leading supplier of aggregates and heavy building materials, for over 12 years from June 2005 until her retirement in August 2017. She joined Martin Marietta in 1998 as vice president and Controller and was promoted to chief accounting officer in 1999. She was subsequently appointed treasurer (2006-2013) and promoted to executive vice president in 2009.
“I am delighted that Anne has agreed to join our Board. With her extensive public company financial and business experience, she will be a valuable addition to the board,” said Michael Hammes, chairman of James Hardie.