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March 2023 #15284 Page #90
Deals Report 2022: Tracking the Openings, Closings, and Acquisitions Craig Webb President, Webb Analytics
here you wanted to be and what you wanted to sell both figured mightily as factors in construction supply’s acquisition, openings, and closures activity in 2022. Deals were almost as numerous as in 2021, but big deals were rarer. Meanwhile, greenfield openings were far more numerous.
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All of that information is part of Webb Analytics’ Deals Report 2022, which gives you data, context, and commentary on the more than 760 construction supply facilities that were acquired, opened for the first time, or closed in 2022. This 17-page PDF tracks what happened at the nation’s suppliers of lumber, roofing, siding, gypsum, landscaping, trusses, components, and millwork, plus hardware stores and home centers. It ranks the biggest deals and biggest dealmakers. There’s a breakdown of activity in each state as well as special looks at Builders FirstSource, SRS Distribution, and US LBM (including the impact of a huge deal announced in January 2023). There are 14 maps and nine tables and charts. And what happened in 2022 is compared with numbers on how many acquisitions, openings, and closures took place annually as far back as 2018.
The Big Picture Webb Analytics recorded 762 construction supply facilities—i.e., locations where a home builder or remodeler would be likely to shop—that in 2022 changed hands, opened for the first time, or were closed. That’s 27% fewer than 2021’s 1,046 facilities. Acquisitions activity was even slower, with 44% fewer facilities involved. But at 164, the number of deals was only 8% lower and there were just four fewer buyers. How? Because there were fewer locations per acquisition: 2.7 per deal in 2022 vs. 4.4 in 2021 and 7.6 in 2020 (when Builders FirstSource absorbed BMC). The 250 greenfield openings mainly were at exterior supply houses, flooring stores, and hardware outfits.
Trusses, Components and Millwork LBM operations in 2022 bought 53 locations that made trusses and components, did millwork, or either made or sold doors and windows. Another eight such facilities started business for the first time. And in this category, the focus was on Arizona and on the stepped-up bids by US LBM and Builders FirstSource to win market share in Phoenix. Continued next page
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