Pro-Build Buying HD Supply's LBM

Pro-Build Holdings, Denver, Co., has agreed to purchase the lumber and building materials operations of HD Supply, Orlando, Fl.

Less than five months ago, Home Depot sold HD Supply to three private equity firms-Bain Capital, Carlyle Group, and Clayton, Dubilier & Rice-for $8.5 billion.

The LBM division, which provides about 40Vo of HD Supply's nearly $5 billion in annual sales, includes 39 lumberyards in Georgia and Florida, 32 truss plants. a construction services division. and l0 engineered wood plants. Some continue operating under the names Williams Bros. Lumber, Cox Lumber, and Forest Products Building Materials.

Pro-Build, the nation's largest pro dealer, operates more than 520 locations in 40 states.

Soon after announcing the deal, HD Supply agreed to sell its Rheem/ Ruud HVAC operations to Watsco Inc., Coconut Grove, Fl.

The deal includes former Hughes Supply and Apex Supply facilities, primarily in the Southeast. HD Supply

More Cuts At 84 Lumber

84 Lumber Co. eliminated nearly 40 jobs at its headquarters in Pennsylvania and closed l2 stores in nine states, including its store in Redding, Ca.

The Redding location is being shuttered because new construction levels in the area are significantly below the level that 84 Lumber officials believe is needed to support stores.

In the West, a store in Merced, Ca., is being converted into a structural components plant. When the current closures are complete, 84 Lumber will have 415 stores and 20 component plants nationwide.

Five closures in the Midwest and Northeast are in metropolitan areas served by other 84 Lumber locations, while four in the Southeast were described as relocations because larger stores that can serve a broader area have been built nearby.

At headquarters, the layoffs will take place mostly in human resources, purchasing, and development. Because about half of affected employees will move to other positions, only 20 will actually leave the company. Similar cuts took place in June and about a year ago, said 84's JeffNobers.

will retain its plumbing operations.

Simpson Goes Southern

Simpson Lumber, a subsidiary of Simpson Investment Co., Tacoma, Wa., has reached agreement with International Paper to purchase three of its southern lumber mills and a sales office in Wilmington, N.C.

"This sale is a positive step for our mill and our employees, following a two-year study of strategic options for this facility," said Sandy McCorvey, manager of the Sampit Lumber Mill in

Georgetown, S.C. The other mills are in Johnson, S.C., and Meldrim, Ga.

"We've been interested in the southern pine lumber business for some time," said Ray Tennison, president of Simpson. "This acquisition diversifies our business and provides opportunity in a new geographic region for Simpson. Each of the three facilities has a well qualified management team and workforce, and they are a good fit for our continuing strategy to acquire operations that enhance our long-term business plans."

The sale is expected to be completed early in first quaner 2008.

LACN'S 2nd Growth held its annual holiday meeting Dec. 6 at the Sheraton, Cerritos, Ca. (1) Russ & Andree Primrose. (2) Jean Hennings, Chris Parker, Charlene Valine. (3) Blair Simmons, Jessica Wright, Steve Lawrence. (4) Barrett Burt, Terry Rasmussen, David Abbott, Mike Carey. (5) Sean Cummings, Efrain Patino. (6) Shalana Nelson, Jason Schulze. (7) Larry Christenen, Stacey & Chris Freeman, Steve Robertson, Karen & Chuck McKay, (8) Karin & Tom Angel. (9)

60 TuB MnncsnNr MtclzrNo Jnuunny 2008

Sal Camarda, Doug Willis, Jack Butler, (10) Allison & Deonn DeFord. (11) Tim Phipps, Cesar Ortiz, Jon Schroeder. (12) Adam Shenruood, Mike Shumaker, Rigo Castellanos, Kim Dickens, Rick Beckwith. (13) John Neal, Judy Grinder, John Allen. (14) Richard Coale, Karen Lewis, Mark Huff. (15)Al Reed, Janeece Lawder, Bill Ferguson. (16) Jill Steiner. Frank Snoddv.'(More photos on next page)

MORE 2ND GROWTH Christmas oarliers

(continued from previous page): (1) Randy Jackson. Jim Nicodemus. Ed Wyche. (2) Graziella Terranova, Gerry Perez. (3) Jennifer & Scott Derham. (4) Ron Reed, Mike Mische. (5) Bob Schmidt, Chris Garcia, Mike Logsdon, Craig Larson. (6) Jason & Melissa Womack. (7) Endy Flores, William Worra. (8)

Arlene Smith, Bill Humphrey. (9) (back row) Thanh Quach, Rick Deen, Tyrone Smith, David Tait, Mike Carey, Adam Sherwood,

Home Depot Sues L.A.

Home Depot has filed a lawsuit against the city of Los Angeles, saying a councilwoman unfairly blocked a new store by voting to require an environmental review and helping neighborhood groups challenge the project's original building permit.

"The councilwoman's office aided and assisted the opponents to the project and, at the same time, sat as the judge on whether the project can go forward or not. She should not have been both," said Jeff Nichols, who heads Depot's real estate division in the West.

Councilwoman Wendy Greuel called the suit "absurd" and said she was ensuring that Depot complies with the city's planning and zoning laws.

In July 2006, the city's Department of Building & Safety granted a permit allowing Depot to open in a former Kmart building in Sunland-Tujunga.

One year later, the city council voted to revoke the permit after a zoning administrator concluded that the project needed to go through a lengthier environmental review. Depot contends that only an over-the-counter permit is needed because the project involved renovation of an existing building.

Local neighborhood groups believe Depot is trying to circumvent the city's environmental review process. "It is unfortunate that Home Depot continues to pursue their own interests, rather than a real resolution and partnership with the local community," said Abby Diamond, a spokesperson for the community group known as the Sunland-Tujunga Alliance.

Home Depot's lawsuit also contends that the city council should have recognized that opponents of the project were funded by a homegrown competitor, California Do-It Center.