New Windsor, N.Y.—With overwhelming support of their shareholders, lumber and building material buying cooperatives LBM Advantage and Independent Builders Supply Association (IBSA) completed their vote today in favor of a merger.
“It is exciting to move this strategic merger forward. The shareholders have voted and confirmed their support to merge the membership and capabilities of these two great cooperatives,” notes Steve Sallah, president and CEO of LBM Advantage. “The increased breadth, the quality of our combined memberships and the regional diversification this merger offers will provide a greater value to our member-dealers today and into the future.”
IBSA’s President Tim Johnson agreed, “The merger is a great fit and will improve the competitive position for all of our dealers. Our regions complement each other and provide the ability to execute National Buying Power while maintaining regional skills and market expertise.”
A target date of fourth quarter 2017 will complete the merger. The combined membership will span 34 states with 585 members and more than 1,000 lumber yards for a unified purpose: to provide a competitive advantage for members by leveraging their collective power.
LBM Advantage Chairman John Callahan of Long Island, NY-based Riverhead Building Supply offered his support, “We saw the synergy of our 2016 merger which brought our regional dealers together, and now, by adding a strong Southeastern-based cooperative, both organizations will gain access to new products and markets.”
IBSA Chairman Kent Berrier of Winston-Salem, NC-based Tuttle Lumber noted both groups are financially successful. He added, “By combining our resources we’ll have an opportunity to provide more value-added services and shared resources, including new technology. As consumers become more digitally sophisticated, this will be imperative for our members.”
“LBM Advantage’s continued expansion is the result of our strength in lumber & building materials, while allowing dealers to work with other hardlines groups and distributors regardless of affiliation,” notes Paul Dean, Advantage’s executive vice president of sales and marketing.
Steve Sallah will remain president and CEO of LBM Advantage. IBSA President Tim Johnson will be a vice president managing his current staff and membership base, and together with Bob Carson, vice president of Advantage will oversee the growth and expansion of LBM Advantage in the Southern and Southwestern regions.
LBM Advantage will operate from four locations in New Windsor, N.Y., Grand Rapids, Mich., Smithfield, N.C. and Monroe, La. The company will continue its philosophy of providing independent dealers the advantage of a national footprint supported by regional expertise as it continues its geographic expansion.
Source: LBM Advantage