Feb 25 2011
Great Southern Wood Preserving, Inc., the nation’s largest producer and distributor of pressure-treated lumber products and U. S. LUMBER Group, LLC, the Southeast’s leading specialty building materials distributor, today completed a strategic alliance and innovative marketing and operations model that will expand the geographic distribution footprint of both companies, give customers the benefit of new economies of scale, and create new growth momentum for both companies and their employees.
Officers of both companies said that the move is representative of the ongoing commitment both companies have to providing world-class products and services to the building materials industry.
“This is an exciting development for both companies, our employees and customers,” said Jimmy Rane, chairman, president and chief executive officer of Great Southern Wood Preserving, Inc. “It will create a vehicle for growth at a time when the economy in general and new housing starts in particular continue to struggle.”
This initiative will allow both companies to bring an expanded range of products to more customers more quickly, and to aid customers with inventory management through the combined expertise in logistics and purchasing of both firms and their affiliates, Rane noted.
Lawrence Newton, chief executive officer of U.S. LUMBER, said the alliance of the two companies is a natural one for many reasons. “Both U.S. LUMBER and Great Southern Wood have an extensive track record of serving customers with exceptional levels of personalized customer service. We share values and a work ethic that will translate into opportunities for our employees, value for our customers, and growth for our suppliers.”
The agreement opens up new markets to both companies. Great Southern will gain new markets for its well-known YellaWood® brand products through U. S. LUMBER’s distribution network, expanding in mid-Atlantic states. At the same time, U. S. LUMBER will widen its reach by making its broad range of specialty products available in Great Southern’s extensive dealer base in the Midwest, Southwest and the Caribbean.
Under the new alliance, an affiliate of Great Southern will become a minority investor in U.S. LUMBER and customers of both companies will leverage the benefits of increased volume purchasing and sharing of “best practices.” No jobs will be adversely affected, nor are management changes anticipated.
Rane and Newton said both companies are working together on a number of initiatives to be launched in the coming months.