The ever-shifting building materials & construction sector got another jolt last week when ABC Supply Co. Inc. announced it would acquire L&W Supply Corp. from USG Corp. for $670 million.
This deal combines two of the nation's largest building materials distributors – ABC Supply is No. 2 on MDM's Top 10 Building Materials & Construction Distributors list with sales of $5.9 billion in 2015, while L&W is tied for No. 10 with sales of $1.4 billion.
Barring any other moves this year – and at the rate this sector has been consolidating, don't count on it – ABC Supply will reclaim the No. 1 spot, which it held from 2011-2015 before being supplanted this year. Builders FirstSource Inc. ascended to the top of the 2016 list with its $1.6 billion purchase of ProBuild Holdings Inc. in April 2015.
ABC Supply's purchase of L&W Supply joins a growing list of blockbuster deals in building materials & construction distribution in the last year or so, including Beacon Roofing Supply Inc.'s $1.1 billion purchase of Roofing Supply Group and the merger of Stock Building Supply Holdings Inc. and Building Materials Holding Corp.
Other top distributors in the sector made moves last month, as well. No. 6 U.S. LBM Holdings LLC, Green Bay, WI, acquired Keene Lumber Co., Muskegon, MI, a full service provider of building materials to the residential and commercial markets in the Muskegon area.
And roofing distribution holding company SRS Distribution, tied for No. 10, acquired National Roofing Supplies Inc. (dba National Building and Roofing Supplies), Patchogue, NY, an independent distributor of residential roofing products, commercial roofing products and other building materials.
Here are other key deals that occurred in August 2016: