DENVER (BUSINESS WIRE) - USBuild, a supply chain company for production homebuilding, today announced the completion of its second round of financing, bringing the total raised to $15 million. This funding round includes key strategic investors Woodside Fund, McCown De Leeuw & Co., Hanley-Wood (Hanley-Wood is publisher of builderonline.com and BUILDER magazine, among other publications), Pulte Homes (NYSE:PHM) and Building Materials Holding Corporation (Nasdaq:BMHC). ''This new infusion of capital will enable us to expand the company's capacity to serve its large homebuilder customers in our initial market in Colorado,'' said USBuild CEO Jim Kimzey. Now headquartered in Denver, USBuild is bringing additional account and logistics management professionals on board.
''We're pleased to be investing again in USBuild,'' said Woodside Fund Managing Director and USBuild board member John Occhipinti. ''The company offers a compelling value proposition for making the homebuilding industry more profitable. By reducing overhead and consolidating operations in Denver, USBuild is setting the stage for tremendous growth.''
''USBuild is delivering on its vision of making production homebuilding more profitable for builders, trade contractors, and manufacturers, and ultimately, more affordable for homebuyers,'' added Phil Collins, a managing director at McCown De Leeuw & Co. and USBuild board member. ''We're confident about the company's ability to build a sustainable, focused business and achieve aggressive milestones.''
''USBuild's sensible supply chain solution has enabled its customers to lower the cost of doing business,'' noted Mike Wood, CEO of Hanley-Wood. ''Our latest investment will help ensure that their unique approach can be a true catalyst for change in the industry.''
''Pulte is making another investment in USBuild because we want to accelerate the rollout of the company's supply chain solution to more communities in Colorado, and then, to other markets,'' said Alan Laing, Vice President, Supply Chain and Customer Satisfaction for Pulte Homes.
In addition to its latest round of funding, USBuild announced several board and management changes. George Mac Connell moves from chief executive officer to chairman, and co-founder Jim Kimzey moves from executive vice president to CEO and director. Additionally, Jim Jefferies, who was vice president, logistics and procurement, becomes chief operating officer. Co-founder and former chairman and chief strategy officer, Bill Bernardy, has retired from active management of the company and joined the advisory board. Ben Phillips, who has been an advisor and consultant to the company, joins the board of directors. (Mr. Phillips is the former CEO of Pelican Companies, and Southeast president of Builders FirstSource, the nation's second largest building materials supplier).
USBuild has developed a sophisticated supply chain solution that makes production homebuilding more profitable for builders, trade contractors, and manufacturers, and ultimately, more affordable for homebuyers. By unbundling labor and materials, dealing directly with manufacturers, and using just-in-time logistics to ensure reliable delivery to home sites, USBuild moves products, as well as information, very efficiently. The company's proprietary software enables builders to configure home orders, facilitate procurement, and schedule product deliveries directly to job sites. Since its launch in January 2000, USBuild has signed key homebuilding customers that construct 40% of all new homes in the Denver market. These builders have realized savings of several hundred dollars for each home built using USBuild's advanced supply chain solution.
About Woodside Fund
Woodside Fund (www.woodsidefund.com) is a leading venture capital firm that excels in developing seed and early stage technology companies. Founded in 1983, the Fund attributes its long track record of success to the high value it places on building productive partnerships with entrepreneurs, investors and other resource providers. Typically serving as a lead investor, Woodside Fund invests from $6 to $14 million in early stage companies focused in the areas of Internet Protocol infrastructure and enterprise software that are located in Northern California and the West Coast. The firm has over $250 million under management.
About McCown De Leeuw & Co.
McCown De Leeuw & Co., Inc. (MDC) (www.mdcpartners.com) is a private equity investment firm with approximately $1.2 billion of capital under management. With a mission to build companies that make a difference, MDC specializes in buying and building industry-leading middle-market companies in partnership with management. Most MDC investments involve controlling positions in established growth-oriented companies, and the firm has selectively made strategic venture-oriented investments in companies that leverage its industry and portfolio company experience. Since 1984, MDC has completed 38 platform acquisitions, creating companies that today collectively generate in excess of $6 billion in annual sales.
Hanley-Wood (www.hanley-wood.com) is the leading business-to-business media company in the residential and commercial construction industry. Founded in 1976, Hanley-Wood is a $160 million company owned by VS&A Communications Partners III, the private equity affiliate of media industry merchant bank Veronis Suhler. Hanley-Wood publishes leading magazines in the residential and commercial construction industry including BUILDER, BIG BUILDER, ihousing, REMODELING, THE JOURNAL OF LIGHT CONSTRUCTION, PROSALES, CUSTOM HOME, residential architect, BUILDING PRODUCTS, CONCRETE CONSTRUCTION, TOOLS OF THE TRADE, AQUATICS INTERNATIONAL and POOL & SPA NEWS.
About Pulte Homes
Pulte Homes, Inc., (www.pulte.com) based in Bloomfield Hills, Michigan, has operations in 44 markets across the United States, Argentina, Puerto Rico and Mexico, where it is the fifth-largest builder. Through its Del Webb (www.delwebb.com) operations, the Company is also the nation's leading builder of active adult communities for people age 55 and older. Over its history, the Company has constructed more than 300,000 homes and was named Builder of the Year for 2002 by Professional Builder magazine. Pulte Mortgage Corporation is a nationwide lender committed to meeting the financing needs of Pulte Homes' customers by offering a wide variety of loan products and superior customer service.
About Building Materials Holding Corporation
Building Materials Holding Corporation (www.bmhc.com) is a leader in the residential construction market, specializing in providing high quality, manufactured building products and value-added installation and framing services to professional residential contractors and builders. BMHC operates through its subsidiaries, BMC West Corporation and BMC Framing Inc., with 145 facilities organized into 58 business units. Keys to the Company's success include concentration on housing markets where growth outpaces national averages, and a strong management structure that keeps BMHC close to local market trends and to the service needs of the Company's customers.
USBuild (www.usbuild.com) is the leader in supply chain management solutions for the production homebuilding industry. Using supply chain advances proven in other industries, USBuild increases homebuilder profitability by streamlining materials procurement, distribution and delivery. USBuild helps builders separate labor and materials to determine the true cost of construction at a detailed level. Through its network of pre-qualified trade contractors -- who use USBuild-supplied materials -- the company helps builders lower construction costs. And USBuild's sophisticated logistics management system ensures cost-effective, just-in-time delivery of building materials to new home job sites. Founded in 1999, USBuild is a privately-held company headquartered in Denver, CO.