Industry Updates: Home Center and Hardware Chains – October 2015
Alexander Lumber Co. has named Richard Vancil as Executive VP. In his new position, Vancil will oversee the company’s Finance, IT, Human Resource, Manufacturing and Business Development departments.
Fastenal Co., for the third time in a year, named a new chief executive, tapping its current CFO, Daniel Florness, for the top post. Mr. Florness is slated to take up his new duties New Year’s Day. Current CEO Willard Oberton, who relinquishes the role for the second time over the past year, will continue to serve as board chairman.
In July, Fastenal’s then-CEO Leland Hein stepped down after less than seven months and became operating chief. His predecessor, Mr. Oberton, returned to fill the top spot.
Gardiners Furniture & Mattress company co-owner Gary Mullaney is retiring. This retirement is believed to be the impetus behind the company’s sale to the Wolf Furniture Co. of Bellwood PA.
Lowe’s Companies Inc. announced that Jocelyn Wong has been named Senior VP and GMM for the company’s seasonal product business area. She will report to Chief Merchandising Officer Michael P. McDermott. Ms. Wong moves to Lowe’s from Family Dollar.
PrimeSource Building Products, Inc., hired George Judd as CEO. He takes over from Bryan Kelln, a Partner at Platinum Equity who has been serving as PrimeSource’s Interim President and CEO. Platinum Equity acquired PrimeSource from ITOCHU Corporation earlier this year.
Sears Hometown and Outlet Stores announced that Michael McCarthy, a former executive of Sears Holdings for 28 years, has returned to the now-fragmented Sears to serve as VP Merchandising and Inventory. He will oversee merchandising, assorting and inventory. Specific duties will include product selection and assortment planning strategy, inventory management and productivity, product and visual merchandising, product marketing and awareness strategies, promotional design, as well as vendor relationships and support.
True Value VP of International, Lars Hybel, suddenly and unexpectedly passed away, Sept. 27. He was 51. Hybel, a native of Denmark, was born in Copenhagen and was with the Chicago-based co-op for just under a year.
Mergers and Acquisitions
ABC Supply Co. has made its largest acquisition since its purchase of Bradco Supply in June 2010. Now, the company has scooped up Norandex Building Materials Distribution, a distributor of windows, siding and other exterior building products. The definitive agreement was signed with Saint-Gobain Delaware Corporation. The transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and is expected to close in the fourth quarter.
Alexander Lumber Co. has acquired the assets of Peoples Complete Building Center located in Watseka, Illinois. As of Oct. 1, this location was open for business under the Alexander Lumber banner. The Peoples Company continues to maintain its other two locations.
Fastenal Company has agreed to acquire certain assets of Fasteners, Inc., a regional industrial and construction supply distributor with store locations in the states of Washington, Idaho, Oregon and Montana.
Harvey Industries Inc., doing business as Harvey Building Products, has been sold to Dunes Point Capital (DPC). Harvey Building Products currently operates through 38 locations.
PrimeSource Building Products, Inc., has been acquired by Platinum Equity from longtime owner, ITOCHU Corporation.
US LBM announced that its subsidiary Wisconsin Building Supply, has acquired Trantow Do-it Center of Merrill, Wisconsin. Former owner Kent Johnson will continue leading day-to-day operations with his existing team, according to the announcement. Trantow Do-it Center is family owned and has serviced the Central and Northern Wisconsin area since 1897.
US LBM Holdings, LLC announced the acquisition of LouMac Distributors, Inc. of Fort Myers, FL from Scott Myers and Lou Luongo. Both, as well as the rest of the team will continue leading day‐to-day operations at their unique location.
US LBM Holdings, LLC., announced the acquisition of the gypsum drywall business of CEMEX USA. General Manager Bobby White, will remain along with his management team as their division joins the Rosen Materials business in Florida. CEMEX USA’s Gypsum Supply Division operates 16 locations throughout Florida and an additional unit in Alabama.
US LBM Holdings LLC. announced the completion of its acquisition of GBS Building Supply of Greenville, SC from its employee shareholders. Bob Barreto will continue leading GBS’s day-to-day operations with his existing team in his current role as CEO and President. In 1972, a group South Carolina- based homebuilders, under the leadership of R. Buford Landers, established a company to serve as their own supply source while also meeting the needs of all professional homebuilders. GBS has grown from a startup with just 10 employees to an employee-owned company with a staff over 100 strong. Today, GBS operates 6 locations across the Carolinas.
US LBM, has announced the acquisition by its subsidiary, Wallboard Supply Company, of Poulin Lumber of Derby, VT from Cory Poulin, who will continue leading day‐to-day operations with his existing team. Poulin Lumber has supplied quality building products and hardware to homeowners and contractors since 1936, with four locations.
84 Lumber has revealed its expansion plans for next year. The company plans its greatest expansion in years, while planning for a handful of consolidations. The company will be adding a minimum of 10 new locations and will continue to expand its manufacturing programs for custom doors, engineered wood products (EWP,) custom millwork, and components.
This stacks up against four stores that the company re-opened over the past two years in response to improving housing starts in those markets: Winder, Georgia (Atlanta,) Macedonia, Ohio (Cleveland,) and most recently St. Augustine, Florida (August) and Savanah, Georgia, (September). St. Augustine and Savanah also feature new 84 Door Shops as well as Kitchen and Bath Design Studios.
The stores being consolidated into other existing stores are: Belle, Ripley and Mineral Wells, West Virginia; Maysville, Hazard and Bardstown, Kentucky; Sennett, New York; and Somerset, Pennsylvania.
Other growth markets that will figure into next year’s expansion plans include Long Island, New York; West Palm Beach, Florida, Denver, Colorado; Stockton, California; Los Angeles; and Raleigh, North Carolina.
Innovative Mattress Solutions is planning on moving its corporate headquarters. The planned move is from Winfield, WV to Lexington, KY was announced this by Innovative Mattress Solutions CEO Kimberly Knopf, as well as Kentucky and Lexington government officials.
Sears Hometown and Outlet Stores has opened its newest location in Ithaca, New York.
The Tile Shop has expanded to four Dallas-area locations with the opening of a new 18,000-sq.-ft. Haltom City showroom.