June 16, 2006
Director of Marketing & Communications
ProBuild Holdings Inc. To Purchase Hope Lumber And Supply Company
Second Major Acquisition this Year for Nation's Largest Professional Building Materials Supplier
Boston, MA (June 16, 2006) - ProBuild Holdings Inc., the nation's largest professional building materials supplier, announced today that it has reached an agreement in principle to purchase Hope Lumber and Supply Company, a leading supplier of lumber, trusses, engineered wood products, millwork and other building materials to the professional residential contractor, from Rooney Holdings, Inc. Based in Tulsa, Oklahoma, Hope Lumber operates 49 yards and 5 truss plants in nine states in the Southeastern and South Central U.S.
The transaction is scheduled to close in July 2006 subject to appropriate regulatory approvals and usual closing conditions. Terms of the agreement were not disclosed.
ProBuild Holdings is a wholly-owned subsidiary of Fidelity Capital, the business development arm of the mutual fund company, Fidelity investments. ProBuild Holdings currently operates more than 400 lumber and building product distribution, manufacturing and assembly centers throughout the U.S., operating under several regional brands, including United Building Centers, Spenard Builders Supply, Lumbermens, Home Lumber Company, Dixieline Lumber Company, Parker Lumber Company, F. E. Wheaton & Company, Strober Building Supply, U.S. Components, and the Contractor Yard.
Committed to a very aggressive strategy, ProBuild's portfolio has experienced significant growth in 2006. The Hope deal follows closely on the heels of ProBuild's February 2006 acquisition of the Lanoga Corporation, the nation's third largest professional building materials supplier. More recent acquisitions include Wolohan Lumber, and Delta Truss of Michigan and Campbell and Curtis in Alaska. Following the acquisition of Hope Lumber, ProBuild's resources will comprise nearly 500 locations in 40 states with more than 16,000 employees and projected 2006 revenues in excess of $6 billion.
"The building industry continues to be an attractive market for us," states Paul L. Mucci, president of Fidelity Capital. "Moving forward, we will continue to pursue additional growth opportunities that will diversify our holdings in this area, not only in terms of geography, but also with respect to additional products and services."
"Hope Lumber has a tremendous reputation for superior products and service in all of its markets," continued Fred Marino, chief executive officer and vice chairman of ProBuild. "The acquisition of Hope Lumber will create the opportunity for ProBuild to further build out our national footprint, while increasing our manufacturing capabilities. At the same time, it also provides Hope's customers, both large and small, with expanded product lines and distribution points."
Following the completion of the sale, the existing Hope corporate management team will remain with the company.
"ProBuild can provide Hope with the resources necessary to continue to grow and serve our customers," said Jim Cavanaugh, chief executive officer of Hope Lumber. "ProBuild's companies have a tremendous reputation within the building supply industry and we are very happy to be joining a team of ProBuild's caliber."
"ProBuild is committed to investing in our businesses to ensure that the necessary resources are in place to maximize the enormous potential within our portfolio," said Marino. "We look forward to working with Hope Lumber to deliver on our mission of being the 'supplier of choice' of high-quality building materials to professional builders and contractors in every market we serve."
To learn more about ProBuild, visit their website at http://www.probuild.com.
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