ProBuild Holdings has bought the assets of CTX Builders Supply, Centex Homes' manufacturer of wall panels, roof and floor trusses, and lumber distributor, it was announced today. A sale price was not released.
The move improves ProBuild's distribution network and footprint, and helps Centex generate cash needed to survive the downturn. It's also likely it will help Centex stave off losses occurring at CTX Builder Supply.
With home sales a shadow of what they once were, it's likely the company was paying to maintain capacity it doesn't need now and won't need in the near future.
The sale includes six facilities in Albermarle, N.C., Plant City, Fla., Buda and Carrollton, Texas, Phoenix, and Visalia, Calif., fortifying ProBuild's east, south, and west regions. The Phoenix location will give the company, which is No. 1 on the 2008 ProSales 100, a presence in one of the largest residential construction markets in the United States, ProBuild said.
"This purchase deepens a long and valued relationship between ProBuild and Centex Homes," said Paul Hylbert, ProBuild's chief executive officer. "Supporting our manufacturing strategy, this transaction is designed to enhance our current footprint and product offerings to better meet the needs of our customers."
ProBuild and Centex have been long-time trade partners. It was recognized as Centex's vendor of the year in 2007. Paul Dodge, ProBuild's senior vice president supply chain, was once Centex's senior vice president of purchasing and supply management.
"The CTX facilities are well-run, well-managed operations. We welcome the experienced, high quality employees that we feel will be a strong cultural fit with our existing operations," said Bill Myrick, ProBuild chief operating officer. "These locations will enable us to continue to serve Centex Homes' operations as well as expand sales to additional customers in these markets."
Centex spokesman Eric Bruner said the company had nothing to add to ProBuild's announcement. In another nod to its "asset light" model, Centex recently sold its mortgage arm.