U.S. Lumber acquires Midwest Lumber
Midwest Lumber's business area extends to Iowa, Wisconsin, North Dakota and portions of South Dakota, Nebraska and Illinois.
Atlanta-based U.S. Lumber Group, the two-step building materials distributor in the Eastern United States, has acquired Midwest Lumber based in Stillwater, Minn., HBSDealer has learned.
Midwest is a full-service distributor serving the upper Midwestern states. The single-unit distributor’s business area extends to Iowa, Wisconsin, North Dakota and portions of South Dakota, Nebraska and Illinois. The company operates out of a 20-acre distribution center with 140,000 square feet of inside storage and an accompanying blacktop yard.
“We are thrilled to be adding Midwest Lumber to the U.S. Lumber family. The Charpentier family and the Midwest Lumber team have built a fantastic business with a well-earned reputation for providing the highest level of service to both their customers and suppliers,” said U.S. Lumber President and CEO Jeff McLendon said. “
According to McLendon, the Midwest Lumber acquisition advances U.S. Lumber’s growth strategy by expanding its geographic presence and product mix. “We’re particularly pleased that combining these complementary businesses will enhance the value proposition we offer our trading partners.”
Midwest Lumber Vice President of Sales Dave Charpentier added: ” We are extremely excited to be joining forces with U.S. Lumber. Our teams share very similar cultures and core values based on honesty, integrity, and best-in-class service to our customers. Becoming a part of U.S. Lumber will enhance our ability to provide growth opportunities for our employees, customers, and suppliers.”
Upon completion of the acquisition, Midwest Lumber will operate under its existing brand name as a division of U.S. Lumber and will be led Charpentier. Financial terms of the transaction were not disclosed. The companies expect to complete the transaction by early June.
Last September U.S. Lumber purchased NILCO, a 12-unit distributor based in Hartville, Ohio with a strong Midwest presence. In 2016, U.S. Lumber merged with Boston Cedar, expanding its presence in the Northeast.
Madison Dearborn Partners, a Chicago-based private equity firm, made an investment U.S. Lumber in March 2017. The investment was specifically designated for “strategic growth.”
U.S. Lumber has annual revenue of more than $800 million and operates locations in 27 states.
HBSDealer Stock Watch: Thursday’s Ticker
|Gainers beat decliners two to one during trading Thursday among hardware and building supply stocks. Of the 30 stocks tracked below, the biggest mover was BXC, which finished 3.5% higher. BECN and BLDR both declined more than 3%.|
|BLDR (Builders FS)||19.11||-3.24%|
|BMCH (BMC Stock)||20.05||+0.25%|
|CENT (Central Garden)||38.36||+0.74%|
|DE (Deere & Co.)||146.61||+1.00%|
|HD (Home Depot)||187.16||+0.43%|
|LL (Lumber Liquidators)||21.29||-0.88%|
|SMG (Scotts Miracle-Gro)||80.79||+0.31%|
|TSCO (Tractor Supply)||67.80||+1.66%|
|UFPI (Universal Forest)||34.12||+1.13%|
Eye on Retail: Sears enters new partnership with Amazon
Sears Holdings Corp. is taking its relationship with Amazon to a new level
Sears Holdings Corp. is taking its relationship with Amazon to a new level.
The department store retailer said that Sears Auto Centers will offer full-service tire installation and balancing for customers who purchase any brand of tires on Amazon.com. The service initially launched at 47 Sears Auto Centers in eight metropolitan areas, including Atlanta, Chicago, Dallas and New York. It will be rolled out to all 400-plus Sears Auto Centers nationwide during the coming weeks.
The deal is seen as a win-win for both retailers. It gives beleaguered Sears a new revenue stream and gives Amazon a way to serve up in-store services even though it lacks a national network of physical retail.
The partnership reflects the growing relationship between Sears and Amazon, which started when Sears began selling its Kenmore appliances on Amazon in July 2017. The brand is now distributed nationally on Amazon with over 250 products. And since December, select products from Sears’ DieHard brand have been sold on Amazon.com, with the lineup steadily expanding.
The collaboration means that Sears Auto will become the first nationwide auto service center to offer Amazon customers the ship-to-store tire solution integrated into the online retailer’s checkout process. To take advantage of the service, Amazon customers select their tires, the Sears Auto location and their preferred date and time for the tire installation. Sears will then contact the customer to confirm the appointment.
In addition, as part of the deal and for the first time, Sears’ DieHard all-season passenger tires will be sold on Amazon.