Builders FirstSource acquiring Cornerstone Building Alliance

Builders FirstSource announced that it is acquiring Cornerstone Building Alliance SW, LLC (Alliance) for approximately $400 million.

Alliance is the largest independently operated supplier of building materials in Arizona, primarily serving the greater Phoenix, Tucson, and Prescott Valley metropolitan areas.

In a statement announcing the deal, Builders FirstSource said that Alliance is uniquely positioned to offer unmatched distribution throughout the highest-growth regions of Arizona with a comprehensive portfolio of premium building materials.

The company serves contractors and builders across the construction spectrum including single-family, multi-family and commercial end markets.

“This acquisition is aligned with our strategy of investing organically and through M&A, to shift our portfolio toward high-value and faster-growth categories,” said Dave Flitman, president and CEO of Builders FirstSource. 

Flitman noted that Alliance’s service area represents the third-largest single-family market and includes the fastest-growing county, Maricopa, in the country. “Alliance’s geographic footprint represents an excellent strategic fit, with a limited overlap of our existing geographic coverage that enables us to expand our product lines across various end markets,” Flitman said.

True Carr, managing partner of Alliance, will continue to run the company. Alliance has more than 300 associates and had sales of about $330 million for the past 12 months as of April 2021.