Strober Organization to buy drywall supplier

Home Channel News, March 5, 2001 by Jason Gonzalez

Pro dealer adds Upper Marlboro, Md.-based Republic Building Supply

BROOKLYN, N.Y. -- Strober Organization last month agreed to purchase Republic Building Supply, a three-unit drywall dealer based in Upper Marlboro, Md.

The acquisition would more than double Strober's presence in the Baltimore/Washington metro market, and give the pro dealer its first facilities in Virginia. Republic has two drywall warehouses in the northern Virginia cities of Chantilly and Fredericksburg.

"This is in line with our strategy of becoming a leading supplier in the Northeast and Mid-Atlantic markets," said Strober chairman and CEO Fred Marino. Strober, which reported 2000 sales of $400 million from 35 yards, has identified a large territory along the East Coast extending from Maine to Washington as the company's target market.

If Strober completes this deal, Republic would become the second Maryland-based drywall specialist the company acquired in less than a year. In April 2000, Strober bought Arkay Building Supply, a two-unit drywall dealer with annual sales of about $30 million. According to Marino, Republic is larger than Arkay but he maintained that he could not provide sales details until after the deal was finalized.

While the Arkay acquisition provided Strober with an entry point into the competitive Baltimore/Washington corridor, Republic would expand that presence to five yards from two. Carolina Holdings, 84 Lumber and especially Builders FirstSource have multiple yards serving the region.

Going forward, Marino said Strober would look to buy additional building material dealers in the Baltimore/Washington markets rather than add new products and services to its existing drywall facilities. The reason for this approach, he explained, is that the drywall yards Strober has purchased do not typically have the acreage required to adequately store lumber.

Marino said he would appoint Republic's two current owners -- Joseph Sansone and Steve Arnhart -- to manage the division, and would retain all employees. Strober intends to rename the affiliate Strober-Republic Building Supply.

The deal is expected to close by the end of the first quarter. Agreement terms were not disclosed by either party.