Former Stock executives form LBM holding company
Former Stock Building Supply executives Fenton Hord and Steve Short are among the industry veterans behind Cornerstone Building Alliance, LLC, a new holding company looking to invest in distributors, manufacturers and installers.
Cornerstone’s leadership team includes president and CEO Steve Short, former Stock Building Supply COO, and Fenton Hord, longtime president and CEO of Stock and current Board Member of Investors Management Corporation (IMC), Cornerstone’s parent company.
“The timing for Cornerstone is outstanding,” said Short. “The building materials industry has suffered through the worst housing depression in history. Many good businesses have survived and are in need of a partner such as Cornerstone to take advantage of the opportunities a recovering market will present.”
Cornerstone targets companies with annual revenues of $10 million to more than $100 million, including one-step manufacturers, distributors and installers of dimensional lumber, engineered wood, roof and floor trusses, wall panels, sidings, windows, exterior doors and millwork, roofing, drywall, interior doors and millwork, cabinets and countertops. The Raleigh, N.C.-based company expects to maintain local and regional brands, keep management teams in place and offer them operating autonomy.
While Cornerstone requires a majority position, they want management teams to retain ownership in the company. “This allows our partners to financially participate in the recovery of the market and the success of the business. It also encourages them to continue making the best long-term decisions,” Short added.
Hord grew Stock from seven locations with $98 million in sales in 1987 to more than 350 locations with more than $5 billion in sales via 68 acquisitions when he retired in 2007. “We know the business, we like the business and we’re excited about the prospects Cornerstone brings to the industry,” said Hord.
