lVla.nufactured byDr-rra.products Internationa.l Inc-

DunnDecr is manufactured from a olastic/wood composite made from recycled materials that will never warp, split or crack.

Composed of approximately 50% post-industrial wood fiber, 50% post-industrial High Density Polyethylene, DunnDecx orovides:

Requires no painting, staining or costly refinishing-ever.

. Virtually no moisture absorption. No rotting, warping, splitting or splintering.

. Inherent UV resistance.

Dimensional stability and non-slip surface, wet or dry, Workability of natural wood. Installs with conventional nails, screws or special fasteners.

. Chemical and bacteria resistance,

. lmpervious to insect infection and fungal decay. Environmentally sound.

Applications include decking, docks, landscaping, furniture, pallets, boardwalks, and other residential, commercial and government applications.

Available in 12, 16 and 20 foot lengths. Specialorders up to 50 feet.

Distributed Nationally By

Fremont Forest Group Corporation

a Marubeni Group Corporation

13215 East Penn St.. Suite 319 Whittier. Ca.90602-1772 Tel 562.945.291 I . Fax: 562.696.85'74' Cell: 360.901.4640

Email: lynnforsberg@fremontforestgroup.com www.fremontforestgroup.com

Los Angeles, CA, Basin R. Lynn Forsberg

(562) 945-291 1 . Fax 562-696-8574

Ventura, CA Matt Shanks

(805) 432.1500 . Fax 810-885-5072

Sacramentoffuba City, CA . Bob Dirham

(530) 822-9519 . Fax 530-647-5046

San Diego, CA Erin Forsberg

(760) 213-3420 Fax562-696-8574

Ponhnd/Lake Oswego,0R . King Shanks

(503\ 226-4224 Fax 503-636-7045

Beaverton, OR . Dusty Allison

(503) 329-8218 . Fax 503-684-9103

Spokane, WA John Wark

(509) 536-6504 . Fax 509-536-6504

Ogden/Salt Lake City, UT . Rick Stanzione (801\ 622-577 4, Fax 801-622-5777

PrescotUPhoenix, AZ , Ross Leisinger (928) 717-1 159, Fax928-445-0444

Denver/Fort Collins. C0 Dick Schmer (970) 493-2194 . Fax 970-493-0485

C}IANGE OF ADffiESSI Send address labeltrom recent issu€ if possible, new address and gdiqit zio to addr6s6 betow. PoSTilASrER Sord address changes to lhe Msrc+rant Magazino, 4500 Campus Dr., Ste. lg0, Neipori g€ach, Ca. 9266G1872. Th€ Mordrant Magazine (USPS 798.56000) is pubkhed monthty at rtslto Campus Dr., Sts. {8{t, N€wport B€edL Ca. 9266&1872 by Cdler Publishing, Inc. Periodlcale PoshSe paid af Newport Bedi, Ca., and addilional po5t dfices. n b an indepsndendy-ownod pr.ddlcation for the retail, whobsab and dristribution leveb of the lunter and buikino orodr.tds marksts in 13 tt€stem statos. Copytigh@c0z by Cutler Publishing, lnc. Covor and entire contents are fully protectad and must not b€ reproducod in any manner wihout wtittsn psmissbn. All ffghts Bes€rved. ft reserves tle fight to accept of relect anv editorial or a&ertising matter, and assumes no liability for mabriab fumisted to it.

WE'RE IOIIO OI,I OREAT S, Doug fir K'lD 1x2--4x12 & larger

Redwood lgD S4S & patterns

Redwood uppers & commons

Cedar K/D STK Ro. S4S & patterns

Cedar K/D C&Btr. Ro. S4S & patterns

Sorvlng 13 lYestem statoe

PUBUSHER Alan Oakes (ajoakesgaol.com)

TBUSI|EB EUERITIfS Davirl Cutler

EDIfOR Davirl Ko€nig (dkoenig@ioc.net)

ASSOCNATE EDfI0F Fobert Fay (tfay@loc.net)

Coil{TRBtmilG EDITOR Dright Cunan

AD SALES ilANAGER Chlrd< Casey (chuckOioc.net)

CIRCULATIOII Heattrer Ketly

ADTNSTRATION DIRECTOR/SECFETARY Marie Oakes (mfpoakes@aol.com)

How to Advertise

Conlact ouradrrurtlslng olflccs for rates:

U.S,: Chuck Casey, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872; (949) 852. 199{l; Fax 94$852{81 ; chuc*@ioc.net

INTERI{ET ADS: Alan Oakes, www.buildingproducts.com; (9a9) 852.1990; Fax 949-852. 0231; 4oakes@aol.com

How to Subscribe

Contact Hstherat (94S) 852.1990

U.$.: 1 year (12 issuos), $15; 2 years, $24; 3 years, $30

FOREIGN (Per year pairl in advance in US funds): $35; Air rates also available,

SINGLE COPIES: $3 + shipping; Back issues (when available), $4.50+shipping

2202N. Pacific (P.O. Box 4989), Orange, CA 92863-4989

(714) 998-8680 (800) 660-8680, FAX 7 1 4-921-8249

Since 1965

Gonsolidation-a fact of life

I wrote this column several weeks ago, before learning that Willamette Industries would give in to a hostile takeover by Weyerhaeuser Co., ending a contentious, three year fight.

Consolidations in the building materials industry, as in every other business, have become a fact of life, and do change the landscape of an industry. As a news magazine, it is not our role to comment on specific consolidations, but to report events evenly and fairly, as well as to educate our readers.

First, I believe it is a fundamental of our economy that each business should continue to grow to its true potential. Thankfully, we live in an entrepreneurial economy, where companies that want to grow, do so both vertically and horizontally in order to enter new markets, create synergies, develop market leadership, eliminate competition, acquire a competitor's products, talent or other strengths. or merely compete against other consolidations. The result is (or should be) to position companies for growth or even survival by driving down operating costs and maximizing shareholder value.

For those who have not gone through the mechanics of a merger, once a company decides to enter into discussions, the courtship begins. Clearly, such discussions often turn acrimonious, or there is deemed not to be a fit, and deals are called off. But many go on to fruition, often over months of negotiation.

For me, the tensest part always has been the valuation agreement and deal structure, and valuation is clearly in the eye of the beholder. The issues iue usually complex----especially the tax consequences. The process is often grueling and nerve-racking for all parties. For months, senior management can be distracted and take its eyes off the day-today business. This is especially true in small to medium companies that lack resources and dedicated due diligence teams, which in itself can be very damaging. Often egos or company politics get in the way, which either break the deal straight away or are a portent of problems to come. Plans get laid out as to how the companies will operate at the close of the deal, who will lead the transition, what changes will be made to the combined businesses to take advantage ofthe proposed synergies, and when.

If it is fought out in a public forum, employees in both camps become concerned for their future, unless there is a strong communications plan in place. There rarely is, as up until the day the ink is dry, the outcome is fluid and talks are always held under strict confidentiality agreements. Unfortunately, the outcome is only too clear that there will be expense cuts made to justify the acquisition. These cuts are not always or solely in the company being acquired.

Statistics show that two out of three consolidations fail. In hindsight it is often clear why. The proposed synergies were never realized, or were overvalued. The due diligence teams worked by the numbers as opposed to truly understanding what they were buying and marrying. Yet the biggest reason why they fail-and often the most difficult to ferret out during negotiations-is the human one, the clash of business cultures. It is often too much about the numbers and unknown sets of variables, as opposed to really nailing down the true business advantage. It has been my experience that companies quickly forget why they bought or merged with a company, as from day one anything and everything that made it an attraction in the first place is changed, in the end driving out the talent that was often the reason to buy.

Lastly, the one issue that is often unclear is what it means for the customer. Will the consolidation be positive or negative? I am sure there are opinions and examples on both sides of the fence, but it does mean larger and fewer competitors. However, we live in an entrepreneurial economy, and consolidations often create turmoil, which opens windows of opportunity to new or existing companies.

In regards to the current merger, my hope for both companies is that when the deal is done, they make this a union to be proud of.

FIBERCEMEl{I SIDIilG

Following are authorized

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Capital Lumber

California

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Honolulu

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Boise

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I)uraPress Sl,stem gives \\'eatherBoartls sidin! thc nrost authcntic. consistcnt gr.lrin rlcl'inition.

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