Centex Homes, continuing to implement its asset-light strategy, has sold its manufacturing unit, CTX Builders Supply, to ProBuild Holdings, the Denver, Colo.-based supplier of building materials to professional contractors. The sale price was not disclosed.
The purchase improves the distribution network and geogrpahic footprint for ProBuild, the naiton's largest supplier of building materials to professional contractors, and helps Centex generate cash needed to survive the downturn. It's also likely to help Centex stave off losses occurring at CTX Builders 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 involved in the manufacturing of wall panels and roof and floor trusses as well as lumber distribution in Albermarle, NC, Plant City, Fla., Buda and Carrollton,Texas, Phoenix, Ariz., and Visalia, Cal. The facilities will fortify ProBuild's east, south, and west regions. The Phoenix location will also give the company 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 W. Hylbert, ProBuild CEO. "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 are long-time trade partners; ProBuild 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 Centex 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 COO. "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 S. Bruner said the company had nothing to add to ProBuild's announcement.