Building materials distributor Cedar Creek acquired three Alamo Forest Products centers in Texas for an undisclosed amount Thursday.
Broken Arrow-based Cedar Creek described the transaction as an asset purchase. Financial details were not disclosed.
This marks the first deal completed since Charlesbank Capital Partners of Boston acquired majority ownership in Cedar Creek, with plans to geographically expand the $500 million-sales company.
William Adams, who stepped in as president and chief executive two weeks ago, said the recapitalized Cedar Creek has targeted the $1 billion plateau, with plans to grow both organically and through acquisition from the southwest U.S. to the East Coast.
Company officials signed the papers Thursday to take over Alamo distribution centers at 2502 Wilson Rd. in Harlingen, 4812 Gulf Freeway in Houston, and 10800 Sentinel Dr. in San Antonio.
Cedar Creek already operates two distribution centers in Texas, at 2405 E. Belt Line Rd. in Carrollton and 530 Steves Ave. in San Antonio. Its seven other centers serve distributors and building supply chains from Oklahoma, Arkansas, Missouri, Louisiana and Tennessee.
Vice President of Communications Jim Shalvoy said Cedar Creek would consolidate its two San Antonio facilities into the newly acquired site, leaving the firm with four locations in the Lone Star State.
Caught by phone just before he boarded an airplane, Cedar Creek founder Clark Wiens said each Alamo facility includes about 40,000 square feet under roof on a 10-acre plot, served by both rail and roadways.
Wiens, who led the acquisition effort, said Cedar Creek would integrate these Alamo locations under its brand, maintaining almost all 20-plus workers.
“That’s our goal, to expand our footprint in Texas,” said Wiens.
The sale leaves San Antonio-based Alamo, a family-owned business operating since 1893, with a string of retail lumberyards in south Texas.
“We have known Cedar Creek for years,” said Alamo President George Vaughan in a press release Thursday afternoon. “We believe that our distribution company is a great fit for them, and that our customers and employees will be well-served by this change.”
Cedar Creek was advised by ClearRidge, Tulsa, in their recent acquisition by Charlesbank Capital Partners.
Cedar Creek buys operations in Texas
Tulsa-based Cedar Creek Inc. on Thursday announced the purchase of Alamo Forest Products wholesale distribution locations in San Antonio, Houston and Harlingen, Texas.
Cedar Creek provides premium wood products to building-materials dealers.
Last month, Boston- and New York City-based Charlesbank Capital Partners, a private equity firm, acquired majority ownership of Cedar Creek, with plans to provide capital to help the company expand product lines and make acquisitions.
“This acquisition underscores our commitment to growing the footprint of Cedar Creek to better serve our existing customers and open new markets,” says Bill Adams, CEO of Cedar Creek, in a written statement.
Clark Wiens, vice president of business development for Cedar Creek and a co-founder of the company, led the acquisition effort of the Texas sites.
Cedar Creek is a wholesale building materials distribution company that began in 1977 as one yard in Tulsa. Since then, it has expanded operations and provides service to more than 13 states across the Midwest and Southeast.
Alamo Forests Products Inc. is a family-owned and -operated wholesale building materials distribution company founded in 1893 in San Antonio.
Tulsa Business Journal Article
Cedar Creek purchases wholesale distribution locations
By Tulsa Business Staff – 6/7/2010
Cedar Creek, a wholesale building materials distribution company with headquarters in Tulsa, announced last week its purchase of Alamo Forest Products wholesale distribution locations in San Antonio, Houston and Harlingen, Texas.
“This acquisition underscores our commitment to growing the footprint of Cedar Creek to better serve our existing customers and open new markets,” said Bill Adams, CEO of Cedar Creek.
Clark Wiens, vice president of business development for Cedar Creek, led the acquisition effort and said he views the purchase as an opportunity to increase the company’s presence in Texas and enhance its reputation.
“We have known Cedar Creek for years,” said Alamo Forest spokesperson George Vaughan. “We believe that our distribution company is a great fit for them and that our customers and employees will be well-served by this change.”
The transaction is structured as an asset purchase.
In May, Cedar Creek was recapitalized by Boston-based Charlesbank Capital Partners with the goal of providing flexible capital for the company to grow beyond its current trade areas.