Stock Building Supply May Be Sold Or Partnered

“We are working very closely with Wolseley to identify potential partners that can help Stock Building Supply grow when the market recovers,” said Stock Building Supply President Joe Appelmann. “Our business model has fundamental differences from the remainder of Wolseley’s portfolio, and in these economic times it makes sense to explore other options.”

Over the last four years, Stock Building Supply has taken aggressive action to diversify the business into the RMI (repair, maintenance, improvement) and commercial sectors. Last October they announced an expansive cost reduction program and a significant restructuring plan to position the business in markets that will be strongest on recovery.

“We have worked diligently to position the business so that it will be ready to take best advantage of the upturn – which we know will come,” said Appelmann. “We continue to operate in the highly cyclical sector of new residential construction in the U.S., but we remain committed to this market. It’s a part of who we are; it’s in our DNA.”

Stock Building Supply, formerly Carolina Holdings, was formed in 1986 by Wolseley’s purchase of Carolina Builders. In 2006 the company announced sales of $5.3 billion, however the continued deterioration of the US housing market has seriously impacted Wolseley’s trading performance and group financial results. U.S. new housing starts that were at levels of 2.2 million in 2006, have fallen to less than 500,000 in January 2009. The decline in housing starts, coupled with a continued decline in lumber prices have expedited Wolseley’s decision to pursue a sale or joint venture, or to dispose of or otherwise exit Stock Building Supply, by August 1, 2009.

“We are confident that we can conclude a deal in the best interests of Stock Building Supply and Wolseley’s shareholders,” said Chip Hornsby, Group Chief Executive for Wolseley plc. “Indeed, our preference is to structure a deal that enables our associates and shareholders to benefit in the long-term potential of the business, such as a joint venture.”

By Stock Building Supply
Contact: Denise Waters, Manager Corporate Communications
(757) 989-2639 or denise.waters@wolseley.com

Twitter Responses to Stock Building Supply

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TriangleBIZJrnl: Once again, Stock Building Supply is put on the sale block : http://tinyurl.com/6vpxjh

craiglwebb: Stock Building Supply's UK parent seeks to sell or dump Stock by Aug. 1