Building Supplies Company Sells in $1.6 Billion Deal

Builders FirstSource Inc., a U.S. building products manufacturer and supplier, is buying ProBuild Holdings in a $1.6 billion deal.

The purchase will combine the companies, making a diversified business with a larger geographic footprint and greater ability to use economies of scale, according to CEO Floyd Sherman of Dallas-based Builders FirstSource.

ProBuild of Denver is one of the largest distributors of building materials to professional builders and contractors in the U.S. and operates lumberyards, component facilities, millwork shops, gypsum yards and retail stores across 40 states. The company earned revenue of about $4.5 billion in 2014.

“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,” Sherman says.

ProBuild is the latest of several recent Builders FirstSource acquisitions. The company’s prior purchase was of manufacturer and supplier Timber Tech Texas in February.

Builders FirstSource currently operates 56 distribution centers and 56 manufacturing facilities in nine states. Manufacturing facilities include plants that make roof and floor trusses, wall panels, stairs, aluminum and vinyl windows, custom millwork and pre-hung doors. The company also distributes windows, interior and exterior doors, lumber and other building products.

To read more about the ProBuild acquisition, click here.