The 2020 Mid-Year Economic Update_long

Builders FirstSource to Acquire ProBuild

$1.6 billion purchase creates national dealer with $6 billion in annual sales.

Builders FirstSource Inc. (Nasdaq: BLDR), Dallas, TX, a supplier and manufacturer of structural and related building products for residential new construction in the U.S., has agreed to acquire ProBuild Holdings LLC for $1.6 billion.

The purchase unites two of the largest building materials companies in the U.S.; ProBuild was No. 2 and Builders FirstSource was No. 7 on the sector's 2014 MDM Market Leaders list. Builders FirstSource reported sales for 2014 of $1.6 billion, up 7.7 percent over the previous year, and ProBuild Holdings had estimated annual sales of $4.3 billion in 2014.

Both firms have private equity backing. Builders FirstSource is partially owned by Warburg Pincus LLC and JLL Partners. And private equity firm Devonshire Investors formed ProBuild in 2006 after nine years of owning and expanding the Strober Organization brand of building material suppliers.

"As the U.S. housing market continues its recovery, we believe now is the ideal time to position Builders FirstSource for its next phase of growth and value creation," said Builders FirstSource CEO Floyd Sherman. "Together we will establish a broader, more efficient platform of manufacturing and distribution capabilities, supported by high-quality service from the best talent in the industry. In addition, each of our companies has complementary strengths, and we plan to learn from each other by implementing best practices across the combined company."

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.