Strober Owner Buying Lanoga

Fidelity Investments, owner of The Strober Organization, Brooklyn, N.Y., has agreed to acquire Lanoga Corp., Redmond, Wa., the nation's third largest pro dealer, from Laird Norton.

Fidelity's business development arm, Fidelity Capital, will make the purchase through Pro-Build Holdings Inc., a new entity that will include Lanoga's 320 locations in 24 Midwestern and western states and Strober's 91 locations in 15 states in the Northeast and Southeast.

In addition to the perfect geographic fit, the two firms have both been aggressively buying other independent dealers, while often allowing the acquired yards with larger markets to maintain their identities as "regional brands." Lanoga's divisions include United Building Centers, Parker Lumber Co., Home Lumber Co., Spenard Builders Supply, Lumbermens, Dixieline Lumber, and F. E. Wheaton & Co. Strober operates Strober Building Supply, Contractor Yard, and U.S. Components.

Combined, the chains will comprise more than 420 locations with over 14,000 employees and projected

2006 revenues of nearly $5 billion. which would su{pass Stock Building Supply and 84 Lumber to create the nation's largest pro dealer.

According to Paul L. Mucci, president of Fidelity Capital and chairman of Pro-Build Holdings, "We believe the acquisition of Lanoga will create significant new opportunities for our existing building materials business as a result of increased scale. the availability of additional product lines, and the advantage of an expanded geographic reach that gives us national market coverage."

Strober c.e.o. and chairman Frederick Marino will serve as c.e.o. and vice chairman of Pro-Build. Lanoga c.e.o. Paul Hylbert, Lanoga's corporate management team, and the existing divisional presidents rvill remain with the company, rvith Hylbert taking on the added role of vice chairman of Pro-Build. The company will continue to be headquartered in Redmond.

"Lanoga is one of the best managed and fastest growing entities in its industry, but it is at a point in its growth where rve believe this sale makes sense to ensure the next phase of its development and its continued ability to serve the professional contractor market," said Laird Norton c.e.o. Jeffery S. Vincent. "As a wellcapitalized company. Fidelity can provide Lanoga rvith expanded scale and flexibility to continue to grotv and serve its custOmers."

The transaction does not include Lanoga's real estate. rvhich will be spun out to become an ongoing business enterprise of Seattle, Wa.-based Laird Norton. Founded in 1855 and now in its seventh generation of family orvnership. Laird Norton ancestors were instrumental in founding companies such as Weyerhaeuser. Potlatch and Boise Cascade.

Lumbermens Buys Az. Chain

Lumbermens, Olympia, Wa., has agreed to acquire Arizona Building Supply, a three-unit chain in northern and rvestern Arizona.

After a brief due diligence perid, Arizona Building Supply is expected to begin operations February l3 as part of Lumbermens family of stores. Arizona Building Supply operates pro-focused lumberyards in Sedona and Fort Mohave, as well as a drywall distribution yard in Cottonwood.

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