The 2020 Mid-Year Economic Update_long

Day: November 30, 2007

Report: HD Supply to Sell LBM Assets

The Home Channel News is reporting that HD Supply has agreed to sell its Lumber and Building Materials unit to Pro-Build Holdings Inc. The unit includes 19 lumberyards in the Atlanta area and 20 in Florida.

The assets are part of Williams Bros. Lumber and Cox Lumber, which HD Supply bought in 2005 and 2006, respectively. At the time of acquisition, Atlanta-based Williams Bros. had sales of $400 million, and the Florida-based Cox had sales of $396 million. The unit also includes Forest Products Supply in Sarasota, FL.

HD Supply was split off Home Depot in August and sold to a trio of private equity firms for $8.5 billion. This is the first news of a change in HD Supply's makeup since the ...

Zep Inc. Plans Sales Through Industrial Distribution

Atlanta-based Zep Inc. says it is looking for opportunities in independent distribution channels to grow its core business in industrial and institutional cleaning and maintenance chemicals. The company named HD Supply and Grainger as examples of distributors they could sell through.
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Zep had fiscal 2007 sales of more than $565 million. It is a producer of cleaning and maintenance products for commercial, industrial, institutional and consumer end-markets. Brand names includes Zep, Zep Commercial, Enforcer, National Chemical and ...

Suncoast Files for Ch. 11 Bankruptcy Protection

Suncoast Roofers Supply Inc., Tampa, FL, has filed for Ch. 11 bankruptcy protection. In its bankruptcy filings, the roofing supplies distributor reported a 57% decline in sales over 2006 due to the decline in housing and related markets.
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For the nine months ended Sept. 30, 2007, sales were about $100 million. By comparison, sales for the distributor during fiscal 2006 were $209.6 million.
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At the same time the distributor was hit with the housing slump, it embarked on an ambitious expansion campaign to vertically integrate" its manufacturing and distributing processes to improve product availability and delivery, and "capture a larger share of supply chain profits."
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In 2006, Suncoast acquired 80% of American Concrete Tile Inc., a ...

Beacon Roofing Organic Sales Decline in 2007

Beacon Roofing Supply Inc., Peabody, MA, reported sales grew 9.7% to $1.65 billion in fiscal 2007, reflecting acquisitions made during the year. Existing market sales fell 4.8%, with decreases in residential roofing and complementary building product sales.

Existing market non-residential sales were up 2.7%.
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Profit was $25.3 million in 2007, down from $49.3 million in 2006.

In the fourth quarter 2007, sales were up 14.% to $493.8 million from the same period a year ago.
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The increase was due to the acquisitions completed since last year's fourth quarter, including North Coast Commercial Roofing Systems. The positive impact from the acquisitions was offset by a decline of 8.3% in existing market sales caused by a 16.4% decline in ...