Builders Square Merging With Hechinger's

Investrnent firm Leonard Green & Partners, LP is acquiring the struggling Builders Square and Hechinger Co. chains to create the nation's third largest home improvement chain with $4.5 billion in sales and279 stores in 29 states.

Buyout specialist Green will pay Kmart just $10 million cash for Builders Square, but assume $2 billion in leases, and pay $3 a share for Hechinger, or about $124 million plus assumption of $381 million in debt.

Green will own lNVo of the combined company, although Kmart has the option to purchase a minority interest later.

Once financing has been arranged and assuming no regulatory intervention, Builders Square's headquarters will be moved from San Antonio, Tx., to Hechingerls base in Largo, Md.

The combined firm won't retain current Builders Square or Hechinger's management, but will be run by Anthony Petrillo as acting c.e.o., a 35year retail executive who has worked with Green in turning around other troubled retail chains.

While many analysts question how combining two under-performers will help rejuvenate either, executives said the merger will at least reduce expenses by eliminating redundant computer systems and overlapping stores.

Builders Square's 162 stores in the Midwest and Southwest had 1996 sales of $2.4 billion. Hechinger Co.'s 117 stores (64 Hechinger's, 52 Home Quarters Warehouse and one Better Spaces) in the East and Midwest 1996 sales of about $2.2 billion.

Earlier this year, Los Angeles, Ca.based Green tried to merge Builders Square with HomeBase.

WWPA, SFPA Cut Back

To cut costs. the Western Wood Products Association is significantly reorganizing its core services, while the Southern Forest hoducts Association has relocated its regional market managers to Louisiana headquarters.

To attract more western mills to its ranks, WWPA s board of directors voted to reduce member dues. As a result, WWPA will eliminate its domestic marketing program. Bob Petow and the marketing staff will stay on through October.

Although there will also be reductions in other departments, including the field staff, WWPA intends on continuing to offer members lumber grading, wood engineering, technical support, business information and export marketing.

SFPA, which had a western regional office in Phoenix, Az., and seven other field offices, instead is looking for four new market managers to work from Kenner. The staff realignment is expected to reduce field marketing costs by about 3OVo in administration and overhead.

lP Settles Siding Suit

International Paper agreed to pay nearly $200 million to settle a class action lawsuit claiming hardboard siding produced by subsidiary Masonite Corp. was defective.

If approved by the court, IP will pay $47.5 million in plaintiff attorneys'fees and damages on a case-bycase basis after a claims administrator inspects each property. Damages aren't expected to exceed current legal reserves of $150 million.

Last year, a jury found the siding defective. The damages phase of the trial was to be held later this year.

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Israel Yigil has joined the engineered wood products staff at International Wood Products, Clackamas, Or. Doug Bussey, ex-Exterior Wood, is new to sales.

Don Clark has been appointed purchasing agent of Reel Lumber, Anaheim, Ca.

Duane Dunning is a new asst. mgr. at BMC West Building Materials, Inc., Vancouver. Wa.

Ben Langworthy is new to US Timber, Boise, Id., handling sales from their westem manufacturing plants in Idaho and Oregon.

Thomas J. Koch, Jr. has been appointed v.p.-human resources of the west coast division at Home Depot, Fullerton, Ca. Tim Pfeiffer is now v.p.-operations of the northwest region working out of the new Seattle, Wa., merchandising office. Steve Johnson succeeds Pfeiffer as district mgr. in the San Francisco area.

Craig Broady is now v.p.-wood products sales at Pope & Talbot, Portland, Or.

Jennifer Foster is new to the accounting staff at Landmark Building Products, San Bemardino. Ca. Rick Hovick has returned from a sales trip to Colorado. Steven King is back from sales trips to Phoenix, Az., Las Vegas and Reno, Nv., and Steve Thurgood has returned from a sales trip to Las Vegas.

Don McGregor, ex-Interfor, has opened a Vancouver, B.C., office for Vanport, Boring, Or.

Steve Ostrin, ex-Timber Products. is now v.p./sales mgr. of Moreland Co.'s West Coast operations, Phoenix, Az.

Charlotte Elliott has joined the sales staff of Great Westem Transportation, Inc., San Bemardino. Ca.

Jim llallstrom, pres., Zip-O Lumber, Eugene, Or., has been elected president of the Pacific Lumber Inspection Bureau.

Bill Galligan has retired after l7 years as technical director of Frank Lumber, Mill Ciry, Or.

Mike Ludwig has been named mgr. of APA's new western region based in Eugene, Or., consolidating the former Tacoma and Eugene regions.

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Dan Shipley has been appointed director of development at Distribution Management Systems, Inc. Todd Bircher is new to the Consulting Services department.

Dan Rogers, ex-California Building Supply, has joined Abel Building Materials, Stockton, Ca.

Christopher Nance has been appointed director of public affairs for the California Forestry Association, Sacramento, Ca.

Rick Tredwell has been promoted to senior sales mgr. at Bostik Inc. and will head up the western divisional sales department.

Andy Prem, Simi Valley, Ca., has been named westem regional sales mgr. for Premier Wood Floors.

Jim Pack, Diablo Timber, Napa, Ca., is back from a tour of Georgia-Pacific Corp.'s Fort Bragg, Ca., mill and timberlands.

Sam Conde, formerly with Garryson Inc., is the new western region sales mgr.industrial at UnionTools.

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Mike llammer has been promoted to v.p.-mktg. at Superior Fireplace Co., Fullerton, Ca.

Brian Gallagher, formerly with Simpson Paper, has joined Louisiana-Pacific, Hayden Lake, Id., as OSB account mgr.

Bill Swaney is now handling sales into Arizona and some purchasing for Huff Lumber Co., Santa Fe SPrings, Ca. Craig Manning is new to engineered products.

Paul Lemerise was promoted to executive v.p. of systems & distribution and chief information officer for TruServ. Rob Liebgott and Bill Godwin are now v.p.s of merchandising, reporting to executive v.p. Gene O'Donnell.

Arlid Nielssen has resigned as president, c.e.o. and a director of Canfor Corp. Chairman Peter Bentley replaces him on an interim basis.

Jennifer Anderson, pres., Davis Lumber & Hardware, Davis, Ca., was re-elected to the Ace Hardware board.

Donald A. Dauwalder, owner, Paul's Scottsdale Hardware, Scottsdale, Az., was elected 3rd v.p. of the National Retail Hardware Association. Reiny Brester, General Hardware, Denver, Co., and Del Garber, Gig Harbor Ace Hardware, Gig Harbor, Wa., are new directors.

Gene Goodyear, Trinity Lumber & Building Supply, Weaverville, Ca., was named Citizen of the Year bY the Trinity County Chamber of Commerce.

Orson Buggie is a new truck driver at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and FreddY Fungus.

Hoo-Hoo Heads To Boston

Lumber fraternity Hoo-Hoo International is journeying to Boston, Ma., for its 105th annual convention.

Based at the Colonial Hilton & Resort, Lynnfield, Ma., the Sept. 7-11 event will feature various tours of historic Boston area sites, meetings, speaker luncheon, receptions, golf, barbecue and clambake.

Post convention options include trips to Cape Cod, Montreal or the Foxwoods Casino, Ledyard, Ct.

The occasion also marks the 75th anniversary of host club #13.