Universal Buying Out Aljoma, Walker-Williams

Universal Forest Products, the nation's largest wood treater, has agreed to purchase four more treating facilities, three from Walker-Williams Lumber Co. and one from Aljoma Lumber.

The additions increase Universal's industry-leading holdings to 23 treating facilities with a capacity of more than 1.2 billion bd. ft.

Walker-Williams is parting with treating facilities in Westville, In.; Blanchester, Oh., and Youngstown, Oh., where operations were being cut back(see April, p.23).

"Our four existing lumber treating facilities in the Great Lakes region are running near full capacity," Universal ceo William Currie said. "These three strategically located facilities will give us an additional2OO million bd. ft. of capacity, allowing us to expand our service to the do-it-yourself retail and pro-dealer markets. With seven facilities in the Great Lakes region, we will be the largest supplier of pressure treated lumber and value-added products in the Midwest."

Walker-Williams continues operating its fencing and decking plants in

Hatchechubbee and Falkville, Al. John Taylor, pres., Walker-Williams, said, "In light of the consolidation in the industry and the reduction in the number of d-i-y customers, we felt it was important for us to exit the treated lumber business and focus on our deck accessory and fence business."

Aljoma's Medley, Fl., plant is one of Florida's leading pressure treated lumber and specialty wood products manufacturers serving South Florida and the Caribbean.

E-Tail Shakeout Predicted

Most retailers that operate solely on the Internet will be out of business within a year, predicts Forrester Research Inc.

"There are just too many companies out there that don't have what it takes to last, and they won't last," said analyst Seema Williams.

The firm expects rising competition plus a continued sell-off of dot-com stocks to cause a rash of bankruptcies and buyouts over the next few months.

The problem is an overcrowded online marketplace where seemingly everyone is selling the same products.

The advantage lies with the largest and best known, who boast the highest customer and sales growth, and traditional chains with well established brand names, even though many (WalMart, Sears, Home Depot) are just launching their online attack.

"There are 30,000 e-tailers out there, and probably 25,000 of them will have to go away," said Ernst & Young's Mark Doll. "But that will end up helping the biggest and best players who can ride the tide."

The research firm says that the shakeout among online retailers has already begun and should intensify as competition builds, investors grow more cautious, and funds dry up just when merchants need money for holiday marketing.

South Carolina Kiln Sold

West Union Hardwood, West Union, S.C., has been acquired by moulding firm Menzner Lumber & Supply.

The acquisition gives Marathon, Wi.-based Menzner its third location, including one in Weir, Ms.

Thad Cloer is in charge of the new location, succeeding his father, Nat, who retired after l7 years as owner.