Home » Stock Building Supply Acquires $128M K&A Lumber Company
Stock Building Supply Acquires $128M K&A Lumber Company
March 9, 2006
Stock Building Supply, Raleigh, NC, a supplier of building materials and services to professionals in the U.S., has acquired K& A Lumber Company, Homestead, FL. K& A is a supplier of framing lumber and rebar (fabricated reinforcing steel) to commercial and residential builders in south and central Florida.
K& A was founded in 1979 as a lumber and building materials supplier. In 1992, the company expanded into rebar fabrication. For the fiscal year ending December 2005, K& A recorded sales of $128 million. More than 60% of K& A's sales are to commercial contractors.
Florida is ranked No. 1 in the U.S. for residential housing permits, and record levels are forecast for commercial and industrial projects. The acquisition of K& A adds 223 associates to Stock. The current management team, including company president Richard Jackson II, and his son and Vice President Richard Jackson III, will remain with the company.
Raleigh, NC-based Stock Building Supply now operates 281 locations in 33 states, with reported sales of $4.1 billion in the fiscal year 2005, ending July 31. Stock Building Supply is a subsidiary of Wolseley plc of Theale, England, which had worldwide sales in fiscal year 2005 of more than $20 billion. Wolseley is traded on the New York Stock Exchange as WOS.
The company has been on a shopping spree lately. It recently acquired University Supply Co. Inc., Hammonton, NJ, a $142 million building material distributor, and $32 million Canyon Drive Lumber, Amarillo, TX. Stock also acquired Seigle's Inc., a $257 million company, last year.