Builders FirstSource nears another acquisition

Two-yard Goldston's in North Carolina is touted for its 'innovation'

DALLAS -- Builders FirstSource, the fast-growing pro dealer based here, could strengthen its position with builders and remodelers in the Research Triangle market in North Carolina if it is able to complete a proposed acquisition of Goldston's Building Supply.

Builders FirstSource confirmed that it has signed a letter of intent to purchase Goldston's, the 92nd-largest home improvement dealer in the industry last year. In 1999, Goldston's, which was founded in 1928, generated $91 million from two yards. It is considered to be a market leader among independent pro dealers serving the Raleigh-Durham, N.C., area.

In a prepared statement, John Roach, the president and CEO of Builders FirstSource, lauded Goldston's as an "innovator" that offered financing to builder customers well before larger dealers had such a program.

For its part, Goldston's would be joining the industry's 10th-largest retailer, which currently operates 80 yards and 56 manufacturing facilities in 12 states. Builders FirstSource generated $1.5 billion in sales in 1999, and Roach has stated that he intends to take the company public sometime next year.

Jim Goldston, owner of the independent company, which is based in Wake Forest, N.C., said in a prepared statement that if all went well, Goldston's agreement with Builders FirstSource would be consummated sometime in June. Scott Warren, the company's vp and general manager, would stay on in that capacity to manage Goldston's for Builders FirstSource, a pattern of ownership that the Dallas pro dealer has established with other acquisitions.

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