Stock makes bid for National Home Center

Stock Building Supply has made a bid to purchase National Home Center, the Springdale, Ark.-based pro dealer that filed for Chapter 11 reorganization on Dec. 8, 2009. Under the agreement made with National, Stock will act as a “stalking horse” bidder for the purchase of substantially all of the assets of National Home Center.

The deal must still gain the approval of the U.S. Bankruptcy Court, Western District of Arkansas. In a press release, Stock said it intends to complete the transaction through a wholly-owned subsidiary no later than April 5.

Stock recently hired Matthew Spain, a former M&A director with investment bank UBS, as its new director of business development. Spain has been charged with the task of looking for strategic acquisitions to round out Stock’s footprint, which now covers 19 markets in the United States. The Raleigh, N.C.-based company is an affiliate of The Gores Group, a private equity firm headquartered in Los Angeles.

With $145 million in sales in 2008, National Home Center ranked in 41st place on the Home Channel News Top 350 Pro Dealer Scoreboard. Sales in 2007 were $190 million, according to HCN data.

Founded in 1972, the 10-unit chain serves builders and homeowners in Arkansas, northeast Oklahoma, southeast Kansas and southwest Missouri. All of its locations, including two flooring superstores, are within the state of Arkansas.