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Boise Cascade Company BCC has completed the purchase of the Parksite door shop in Lakeland, FL, thereby adding the 15th millwork location to its portfolio.
BCC stock lost 2% during Tuesday’s trading hours, post the announcement of the news.
Boise Cascade’s New Florida Location
The purchase agreement between Boise Cascade and Parksite involves only the Florida door shop location among the 22 locations. This strategic transaction will expand BCC’s millwork business in the Southern region, allowing it to expand its customer reach.
The newly acquired Florida door shop offers a vast portfolio of premium entry and decorative glass doors featuring Therma-Tru PrismaGuard premium finish options. The company will continue operations in the acquired area and has further plans to expand the offerings to include Simpson and interior flush and molded doors.
The new Florida millwork will co-exist with BCC’s already existing millwork facility in Milton, FL. This conjunction will enable the company to offer Therma-Tru products throughout the entire state of Florida.
BCC’s Focus on Enhancing the BMD Segment Bodes Well
Boise Cascade runs a vertically integrated business model between two segments, Wood Products and Building Materials Distribution (or BMD). The BMD segment operates a nationwide network of 38 owned and leased distribution facilities across the United States, including 14 door and millwork facility locations. The primary growth strategy opted by the company for this segment includes expansion of products and services, increased market penetration through acquisition or through the opening or expansion of locations in under-served markets, and identification and execution of adjacent distribution platforms that can be scaled.
Regarding its expansion of products and services growth strategy, the company engaged in expanding the product line under the BMD segment through the incorporation of doors and millwork. Keeping this new product line expansion in mind, on Aug. 5, 2024, the BMD segment acquired assets of a door and millwork operation in Boise, ID, for a total value of $3.5 million. Furthermore, on Oct. 2, 2023, the company acquired Brockway-Smith Company (“BROSCO”), a wholesale distributor specializing in doors and millwork, for a total consideration of $166.2 million. During the first nine months of 2024, the BROSCO acquisition supported the sales volume growth of the BMD segment, as in an otherwise scenario the sales under the BMD segment would have decreased 2% year over year.
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