Builders FirstSource Announced Its Acquisition of Cornerstone Building Alliance
Builders FirstSource has announced a $400 million acquisition of Cornerstone Building Alliance SW, LLC (Alliance), which employs over 300 people, had sales of more than $330 million in the previous year.
Alliance is Arizona’s largest independently owned and operated building materials supplier, primarily serving the Phoenix, Tucson, and Prescott Valley metropolitan areas.
Builders FirstSource said in a statement announcing the deal that Alliance is uniquely positioned to offer unrivaled distribution throughout Arizona’s highest-growth regions with a comprehensive portfolio of premium building materials.
Contractors and builders across the construction spectrum, including single-family, multi-family, and commercial end markets, are served by the company.
Builders FirstSource’s president and CEO, Dave Flitman, in a statement “This acquisition is aligned with our strategy of investing organically and through M&A, to shift our portfolio toward high-value and faster-growth categories.”
Flitman pointed out that Alliance’s service area includes the country’s fastest-growing county, Maricopa, as well as the third-largest single-family market.
“Alliance’s geographic footprint represents an excellent strategic fit, with a limited overlap of our existing geographic coverage that enables us to expand our product lines across various end markets,” Flitman added.
True Carr, Alliance’s managing partner, will remain in charge of the company. As of April 2021, Alliance had over 300 associates and annual sales of approximately $330 million.
“This transaction provides incredible opportunities for our customers and employees,” Carr stated.
“We have grown this business into an industry leader and joining the Builders FirstSource family is a clear win for all stakeholders, representing the next chapter in Alliance’s successful journey.”
Alliance Lumber, Alliance Truss, Alliance Hardware, and Alliance EWP are all based in Glendale, Arizona.
Alliance was founded in 1984 in Phoenix before becoming a member of the Cornerstone Building family of companies in 2012.
The acquisition will be funded by a combination of existing cash and credit facilities, with the transaction expected to close in the second quarter of 2021, according to Builders FirstSource.
Builders FirstSource is headquartered in Dallas, Texas, and has approximately 550 locations in 40 states.