Builders FirstSource Expands Value-Add Service Offering through the Acquisition of Kansas City Building Supply, a Top Supplier of Windows, Doors, and Millwork to Homebuilders in a Growing Market

Rhea-AI Summary

Builders FirstSource (BLDR) announced the acquisition of Kansas City Building Supply, enhancing its presence in the Kansas City area. This strategic move brings an annual revenue of approximately $30 million and strengthens BLDR's offerings in interior and exterior doors, windows, cabinetry, and hardware. Chad Crow, CEO, emphasized the importance of this acquisition amidst ongoing merger planning with BMC. The transaction aims to improve customer service and expand growth opportunities for employees and customers alike, positioning Builders FirstSource for increased success in the competitive market.

Positive

• Acquisition of Kansas City Building Supply enhances market presence in Kansas City.
• Expected annual revenue contribution of approximately $30 million.
• Strengthened product offerings including doors, windows, and cabinetry.
• CEO Chad Crow supports ongoing strategy for accretive tuck-in acquisitions.

Negative

• None.

DALLAS, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (Nasdaq: BLDR), the largest supplier of building products, prefabricated components, and value-added services in the United States, today announced it has purchased the assets of Kansas City Building Supply, located in Overland Park, Kansas.

Kansas City Building Supply has built a strong reputation for high quality products and customer service. They are a leading supplier of interior and exterior doors, windows, millwork, cabinetry, and hardware to residential homebuilders, repair and remodel contractors, and retail consumers in the Kansas City market, with annual revenue of approximately $30 million.

“I am very happy to welcome Dennis Donnelly and all of his team members to Builders FirstSource. We look forward to deepening our presence and expanding our value-add offerings to customers in the Kansas City MSA. Even with our BMC merger planning underway, we plan to continue to pursue accretive tuck-in acquisition opportunities that create value for our business and our customers,” said Chad Crow, President and Chief Executive Officer.

Dennis Donnelly, President of Kansas City Building Supply, will assume management responsibilities for the other existing BFS locations in the Kansas City market. Mr. Donnelly added, “I’m excited for the tremendous growth opportunities this transaction provides for both our employees and customers. Our people have always been passionate about customer service. They will now have greater access to resources and product offerings to help our customers become even more successful.”

About Builders FirstSource
Headquartered in Dallas, Texas, Builders FirstSource is the largest U.S supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling. We provide customers an integrated homebuilding solution, offering manufacturing, supply, delivery and installation of a full range of structural and related building products. We operate in 40 states with approximately 400 locations and have a market presence in 77 of the top 100 Metropolitan Statistical Areas, providing geographic diversity and balanced end market exposure. We service customers from strategically located distribution and manufacturing facilities (certain of which are co-located) that produce value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork and pre-hung doors. Builders FirstSource also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other building products. For more information about Builders FirstSource, visit the Company’s website at www.bldr.com.

Contact:
Binit Sanghvi
VP Investor Relations                                                 
Builders FirstSource, Inc.
(214) 765-3804              

Source: Builders FirstSource, Inc.

FAQ

What is the significance of Builders FirstSource's acquisition of Kansas City Building Supply?

The acquisition enhances Builders FirstSource's market presence in the Kansas City region and adds approximately $30 million in annual revenue.

How will the acquisition impact Builders FirstSource's growth?

The acquisition is expected to improve customer service and expand growth opportunities for both employees and customers.

What products does Kansas City Building Supply provide?

Kansas City Building Supply is a leading supplier of doors, windows, cabinetry, and hardware to homebuilders and contractors.

Who will manage the Kansas City Building Supply operations after the acquisition?

Dennis Donnelly, President of Kansas City Building Supply, will manage the existing Builders FirstSource locations in the Kansas City area.