Builders FirstSource Adds Vertically Integrated Capabilities Through Acquisition of Raney Construction, an Established Provid...
December 09 2019 - 5:15PM
Builders FirstSource, Inc. (Nasdaq: BLDR) today
announced it has purchased the assets of Raney Components, LLC and
Raney Construction, Inc. (“Raney”), located in Groveland, Florida.
Founded in 1997, Raney is recognized in the industry for
pioneering a vertically-integrated manufacturing and installation
model which significantly improves labor productivity and reduces
cycle times for customers. Through this value-added approach,
Raney supplies wall panels, roof trusses, roof decking, interior
wall framing and other select building materials and then partners
with sub-contractors to install these products in approximately
three thousand homes per year to its production builder customers
across Florida. Raney has annual revenue of approximately $140
million.
“I am thrilled to welcome Buddy Raney and his entire team of
employees into the Builders FirstSource family. Raney has been an
innovator in our industry in working toward fast and efficient
homebuilding by combining the supply of materials with off-site
manufacturing to control and accelerate the construction schedule.
Their success has been driven by reducing cycle times and
increasing labor efficiency, helping to alleviate industry-wide
home affordability constraints. This acquisition not only
strengthens our leadership position in Florida, but also provides
us with a new vertically-integrated value-added service capability
within our company’s next-generation growth strategy,” said Chad
Crow, Chief Executive Officer.
Buddy Raney, Founder and Chief Executive Officer of the Raney
businesses, added, “Raney is built on the core values of quality,
customer service, performance, and safety. Builders FirstSource
believes in our business model and provides an exceptional fit
through its scale and resources to fuel the next chapter of our
growth. I’m proud to join forces with Builders FirstSource and
excited about what the future holds for the Raney team.”
Mr. Crow added, “Raney is our fourth tuck-in acquisition of
2019, which together provide over $200 million in annual
value-added net sales. As homebuilding becomes more sophisticated,
we are focused on expanding our ability to partner and integrate
with customers to streamline the construction process. This
acquisition marks our entry into vertically integrated
manufacturing. We will continue to pursue acquisitions that drive
construction efficiency and enhance our customer value
proposition.”
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.
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