Builders FirstSource announced Dec. 23 it acquired Alpine Lumber in a deal that makes it by far Colorado's biggest pro lumberyard chain. Alpine has annual sales of roughly $500 million.
Alpine's 18 locations in Colorado plus three more in northern New Mexico often overlap with BFS' 26 Colorado facilities, many of which came with the dealer's end-of-2020 merger with BMC. Thus, there may be some consolidation coming. But even with those potential changes, BFS still would dominate in the Centennial State. Kodiak Building Partners has 24 stores in the state, but most are door specialty shops. US LBM has seven locations, mostly former Foxworth-Galbraith yards, and 84 Lumber a few less. Nebraska-based Builders. also has a busy location in Denver.
“Alpine has long-standing customer relationships and a proven track record of profitable growth in highly attractive markets,” BFS President and CEO Peter Jackson said in a news release. “This acquisition aligns with our strategic pillar to deploy capital to high-growth investments, and it enhances our footprint in our West Division. The complementary nature of our businesses and shared cultures of delivering exceptional customer service will provide significant benefits to our customers, employees, and shareholders.”
Alpine CEO Hamid Taha will remain with the business for a transition period to help ensure a successful combination of the Alpine and BFS businesses in Colorado and northern New Mexico.
“This transaction rewards the long history of dedication by Alpine’s employee owners and positions the combined business to provide a wider range of product categories and superior service to our customers," Taha said. Unlike many other companies BFS has acquired, Alpine is 100% owned by its employees as part of an Employee Stock Ownership Plan.
With the deal--expected to close in 1Q25--BFS nears 600 locations in 43 states. BFS plans to pay for the deal through a combination of existing cash and credit facilities.
Class VI Partners and Davis Graham of Denver advised Alpine on transaction and legal matters, respectively. Rothschild & Co. and Centerview Partners LLC acted as financial advisors. Alston Bird served as the legal advisor to BFS.