Custom Stone Joins SiteOne Landscape Supply

Rhea-AI Summary

SiteOne Landscape Supply (NYSE: SITE) has announced the acquisition of Custom Stone, a wholesale distributor of hardscapes products with six locations across Texas markets including Austin, Dallas-Fort Worth, and Houston. This strategic acquisition positions SiteOne as the leading hardscapes provider in these high-growth markets. The deal marks SiteOne's seventh acquisition in 2024, advancing its strategy to offer a complete range of landscape supplies and services to professionals nationwide.

As the largest and only full product line national wholesale distributor of landscape supplies in the United States, SiteOne primarily serves residential and commercial landscape professionals specializing in design, installation, and maintenance of outdoor spaces.

Positive

• Acquisition of Custom Stone adds six strategic locations in high-growth Texas markets
• Strengthens market leadership position in hardscapes across Austin, Dallas-Fort Worth, and Houston
• Represents the seventh acquisition in 2024, showing strong execution of expansion strategy

Negative

• None.

Insights

M&A Analyst

This strategic acquisition of Custom Stone significantly strengthens SiteOne's market position in three key Texas metropolitan areas. With six new locations across Austin, Dallas-Fort Worth and Houston markets, this move consolidates SiteOne's leadership in hardscapes distribution in these high-growth regions. Texas' robust construction and landscaping markets, driven by population growth and economic expansion, make this a particularly valuable addition to SiteOne's portfolio.

Being the seventh acquisition in 2024, this transaction demonstrates SiteOne's aggressive growth strategy through strategic M&A. The company's focus on expanding its full-range product offering across markets indicates a well-executed roll-up strategy in the fragmented landscape supply industry. Custom Stone's established presence and experienced team will likely accelerate market penetration and cross-selling opportunities, potentially driving revenue synergies across the combined customer base.

For investors, this acquisition represents continued execution of SiteOne's consolidation strategy, particularly valuable in high-growth Sun Belt markets. The transaction should enhance the company's competitive moat and local market density, typically leading to improved operational efficiency and profitability through economies of scale.

Market Research Analyst

The Texas markets targeted in this acquisition represent significant growth potential for SiteOne. The state's construction sector remains robust, with the Austin, Dallas-Fort Worth and Houston metros experiencing substantial commercial and residential development. These markets are characterized by strong demographic trends, including population growth and business relocations, which drive demand for landscaping products and services.

The hardscapes segment is particularly attractive due to its higher margins compared to traditional landscape supplies. By becoming the "clear hardscapes leader" in these markets, SiteOne positions itself to capture premium pricing and expand market share in a profitable product category. The acquisition also creates barriers to entry for competitors, as establishing similar distribution networks requires significant capital investment and local market knowledge.

ROSWELL, Ga.--(BUSINESS WIRE)-- SiteOne^® Landscape Supply, Inc. (NYSE: SITE) announced today its acquisition of Custom Stone, a wholesale distributor of hardscapes products with six locations across the Austin, Dallas-Fort Worth and Houston, Texas markets.

“The addition of Custom Stone will provide SiteOne with six well-located sites across three high-growth markets, making us the clear hardscapes leader in Austin, Dallas-Fort Worth and Houston,” said Doug Black, Chairman and CEO of SiteOne Landscape Supply. “We look forward to welcoming the experienced and knowledgeable Custom Stone team to the SiteOne family and, together, better serving our combined customers.”

This is the seventh acquisition in 2024 for SiteOne as the company continues to expand the number of markets in which it offers the full range of landscape supplies and services to landscape professionals.

About SiteOne Landscape Supply:

SiteOne Landscape Supply (NYSE: SITE), is the largest and only full product line national wholesale distributor of landscape supplies in the United States and has a growing presence in Canada. Its customers are primarily residential and commercial landscape professionals who specialize in the design, installation and maintenance of lawns, gardens, golf courses and other outdoor spaces. https://www.siteone.com/

Source: SiteOne Landscape Supply, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241223007843/en/

Investor Relations:

SiteOne Landscape Supply, Inc.

470-270-7011

investors@siteone.com



or



Media:

SiteOne Landscape Supply, Inc.

Erin Edstrom 404-395-5357

Senior Director, Integrated Marketing & Events

EEdstrom@siteone.com

Source: SiteOne Landscape Supply, Inc.

FAQ

What is the significance of SiteOne's Custom Stone acquisition for its Texas market presence?

The Custom Stone acquisition establishes SiteOne (NYSE: SITE) as the leading hardscapes provider in Austin, Dallas-Fort Worth, and Houston, adding six strategic locations across these high-growth Texas markets.

How many acquisitions has SiteOne (SITE) completed in 2024?

Custom Stone represents SiteOne's seventh acquisition in 2024, demonstrating continued execution of their expansion strategy.

What markets will Custom Stone's acquisition strengthen for SiteOne (SITE)?

The acquisition strengthens SiteOne's presence in three Texas markets: Austin, Dallas-Fort Worth, and Houston.

How does the Custom Stone acquisition align with SiteOne's (SITE) business strategy?

The acquisition aligns with SiteOne's strategy to expand the number of markets where it offers a full range of landscape supplies and services to landscape professionals.