Merger of LBM buying groups
LBM Advantage, a lumber and building material buying co-operative that was formed with the merger of ENAP and Progressive Affiliated Lumbermen (PAL), plans to merge again – this time with North Carolina-based Independent Builders Supply Association.
Pointing to strong dealer support throughout the East Coast, Midwest and Southern markets, LBM Advantage and IBSA announced their merger plans Thursday. The combined membership will span 34 states with 585 members and over one thousand lumber yards.
The expanded entity – to be called LBM Advantage -- will add a Smithfield office (photo inset) to the existing three LBM Advantage operating offices in New Winsdor, New York; Grand Rapids, Michigan; and Monroe, Louisiana.
Steve Sallah will remain president and CEO of LBM Advantage. Tim Johnson will be a vice president managing his current staff and membership base. Tim and Bob Carson, vice president of LBM Advantage, will oversee the growth and expansion of LBM Advantage in the South and Southwest.
“For forty years IBSA has built a strong reputation for service and value for its members; I am excited to partner with such a respected and experienced organization,” said Sallah. “I believe this transaction will bring immediate value to the members of Advantage and IBSA.”
The company will continue its philosophy of providing independent dealers the advantage of a national footprint supported by a strong regional presence as it continues its geographic expansion, according to the merger announcement.
The non-binding agreement requires approval by the shareholders of each cooperative as well as satisfactory completion of due diligence.
Also from the merger announcement:
• IBSA’s President Tim Johnson said: “The merger is a great fit and will improve the competitive posture of all our dealers. Our regions complement each other and the ability to execute National Buying Power with regional expertise will provide our dealers with enhanced competitive advantages while maintaining regional skills and market insights.”
• LBM Advantage Chairman Tim Lancaster, from Chelsea, Michigan said: “The benefits of this are easy to see. Both organizations will gain access to new products and markets. We saw the benefits of our 2016 merger, bringing our regional dealers together. By adding a strong Southeastern-based cooperative, we are both filling in regional voids and expanding our market strength.”
• IBSA Chairman Kent Berrier of Winston-Salem, North Carolina-based Tuttle Lumber said: “By combining our resources we’ll have an opportunity to provide more value-added services and shared resources, including new technology. As consumers grow more digitally sophisticated, this will be imperative for our members.”
• Paul Dean, LBM Advantage’s executive VP said: “LBM Advantage’s continued expansion is the result of our strength in lumber & building materials, while allowing dealers to work with other hardlines groups and distributors regardless of affiliation."