BMC WEST CONTRACTS TO ACQUIRE BUILDING MATERIALS CENTERS SERVING AUSTIN AND SAN ANTONIO MARKETS
Stripling-Blake operates three locations in Texas, two of which are in the Austin market area and the other in New Braunfels, which is just 12 miles north of San Antonio and also serves the San Antonio market. Donald S. Hendrickson, BMC West president and chief executive officer, stated, "This acquisition will fit very well with the others we have made in Texas since 1993. We will now have nine locations in the central Texas area and be well positioned to serve both the metro and outlying areas of this region."
"The state of Texas, now the second most populous state in the nation, has been experiencing rapid growth in recent years and Austin has lead the state in most measures of economic activity. The region has developed a strong core of high-technology manufacturers and service companies that continue to expand and bring additional demand for residential and commercial construction," Hendrickson said. Continued growth in these industries is expected to provide stable long-term growth in the Austin/San Antonio corridor.
The Stripling-Blake facilities are in excellent condition and include a truss manufacturing plant and a shop for manufacturing and assembly of millwork products such as doors, windows and moldings. "The business strategy at Stripling-Blake is very similar to the basic BMC West mission of serving the professional contractor and advanced service- oriented consumer. Their leadership in providing value-added products to their customers mirrors what we are doing in other BMC West markets," Hendrickson noted. The size and quality of the real estate and buildings included in the transaction offer BMC West capacity for continued expansion to meet the needs of the market.
Hendrickson also stressed that the most crucial asset included in the acquisition is the strong management team and employee group at Stripling-Blake. "These stores have built an excellent reputation for quality and service in the eyes of their customers, and that's the result of a well-trained, dedicated group of people," he said. "They will play a leading role in our continued growth and profitability."
Under the terms of the agreement, BMC West will pay an undisclosed amount in cash. Closing is scheduled for early April.
The company now owns and operates 49 building materials centers in Colorado, Washington, Idaho, Texas, Utah, California, Nevada, Montana, Oregon, and Arizona. For the year ended December 31, 1994, BMC West had annual sales of $547.1 million.
/CONTACT: Ellis C. Goebel, Vice President and Treasurer of BMC West Corporation, 208-331-4410/
CO: BMC West Corporation; Stripling-Blake Lumber Company, Inc. ST: Idaho, Texas IN: REA SU:
RB-VL -- SE006 -- 8986 03/21/95 07:51 EST
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|Date:||Mar 21, 1995|
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