Builders FirstSource® Acquires Schoeneman's Building Materials Center

Rhea-AI Summary

Builders FirstSource® has acquired Schoeneman's Building Materials Center with the help of 1stWEST M&A as the advisor. The acquisition process was completed efficiently within 45 days. Schoeneman's, known for its experienced staff and wide range of building materials, has been a trusted name since 1888. Builders FirstSource sees this acquisition as a valuable addition to their portfolio in the lumber and building material sector.

Positive

• Efficient due-diligence process leading to the successful acquisition of Schoeneman's by Builders FirstSource.

• Schoeneman's strong reputation and history of providing exceptional service and a wide selection of building materials.

• Builders FirstSource adding a valuable asset to their portfolio in the lumber and building material sector.

Negative

• None.

Insights

Financial Analyst

The acquisition of Schoeneman's by Builders FirstSource is a strategic move that can potentially yield operational synergies and market expansion benefits. Given Builders FirstSource's track record of efficient due diligence, as seen with the 45-day closure of this deal, we observe a company that is seasoned in integrating acquisitions. This could mean a smoother transition and quicker realization of financial benefits such as cost savings and increased revenues from cross-selling opportunities. Historically, the building material sector has seen consistent M&A activity, regardless of interest rate volatility, which suggests resilience and an ongoing consolidation trend in the industry. Builders FirstSource appears to be leveraging its liquidity to strategically expand its portfolio and presence in the Midwest. However, the final impact on BLDR's stock will depend on how well the company integrates Schoeneman’s operations and realizes potential synergies. The long-standing reputation of Schoeneman's for quality service indicates a brand value accretive to Builders FirstSource's existing operations.

Market Research Analyst

From a market growth perspective, Builders FirstSource’s acquisition of Schoeneman's can be seen as a positive growth strategy, expanding its footprint in the Midwest region. This move not only increases market share but also demonstrates an enduring demand for building materials and products in those areas. It's important to recognize that within the broader housing and construction markets, regional strength can be a valuable asset, particularly when facing macroeconomic uncertainties. Schoeneman's strong community ties and trusted brand could help Builders FirstSource in strengthening customer loyalty and local market dominance. Yet, investors should monitor how this acquisition aligns with broader economic trends, such as housing starts and construction spending, to understand its long-term potential.

1^stWEST M&A Served as Schoeneman's Advisor in the Successful Transaction

EVERGREEN, Colo.--(BUSINESS WIRE)-- 1stWEST Mergers and Acquisitions, the leading investment bank and M&A advisory in the building material sector, announced today that its client, Schoeneman's Building Materials Center, has been acquired by Builders FirstSource^® (NYSE: BLDR).

1^stWEST M&A served as Schoeneman's advisor throughout the successful transaction. Due to Builders FirstSource’s remarkably efficient due-diligence process, the Schoeneman's acquisition was closed within 45 days of the signing of the letter of intent.

“Since 1888, Schoeneman’s has established itself as a trusted name with experienced staff and a large selection of building materials and products. They provide convenient and exceptional service for their customers and support their communities in South Dakota and Iowa,” according to the company. (Link to the Builders FirstSource announcement here.)

“M&A activity in the LBM (lumber and building material) sector has never really slowed down, despite the volatility of interest rates. Great companies continue to find excellent acquisition values, and acquirers clearly have the liquidity to add to their portfolios,” said John D. Wagner, a Managing Director at 1^stWEST M&A. “In this case, Builders FirstSource has obtained a real gem in its acquisition of Schoeneman’s, a company whose top-shelf reputation stretches far and wide.”

About 1stWEST M&A

1stWEST Mergers & Acquisitions is a full service, international investment banking and advisory firm that is focused on the lower middle-market of companies, where it has transacted more than $1.4 billion in deal values. The firm has built a unique business solutions platform of assisting owners and shareholders in selling their companies, acquiring other businesses, and raising growth capital. With Managing Directors in the US, Mexico, Panama, Peru, Brazil, Argentina and Chile, 1stWEST M&A is uniquely positioned to serve its clients around the globe. Learn more: www.1stwestma.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240510923168/en/

Media Contact:

John D. Wagner

j.wagner@1stwestma.com

Source: 1stWEST Mergers & Acquisitions

FAQ

Who advised Schoeneman's in the acquisition by Builders FirstSource?

1stWEST M&A served as the advisor for Schoeneman's in the acquisition by Builders FirstSource.

How long did it take to complete the acquisition process?

The acquisition process was efficiently completed within 45 days.

What is the stock symbol for Builders FirstSource?

Builders FirstSource's stock symbol is BLDR.

What kind of products and services does Schoeneman's Building Materials Center provide?

Schoeneman's offers a wide selection of building materials and products, known for their exceptional service and experienced staff.

In which states do Schoeneman's support their communities?

Schoeneman's supports their communities in South Dakota and Iowa.