Griffin Advises John H. Myers & Son, Inc. in Acquisition of the Lumber Yard XL Division of Wolf Organization, Inc.
John H. Myers & Son, Inc. is a York, Pennsylvania-based building products distributor that services customers in the central and eastern Pennsylvania and northern Maryland markets through five primary locations. The company’s customers are primarily professional commercial and residential building contractors and developers. Myers is independently owned by third-and fourth-generation members of the Myers family, and was founded in 1916.
The nationwide decline in the residential housing market over the past three years coupled with the broader economic recession in 2008 has created an extremely challenging environment for building products companies in general. This difficult market, however, can produce opportunities for growth and expansion via sector consolidation. Myers, which has significant market share within its markets, was presented with such an opportunity when The Wolf Organization (also based in York, PA) decided to divest one of its businesses, The Lumber Yard XL division. Myers’ acquisition of The Lumber Yard XL would eliminate a primary competitor to Myers in many of its markets and enable Myers to increase its size by 50%.
Myers retained Griffin as exclusive financial advisor to advise on the transaction, in part because of Griffin’s industry expertise in its Building Products Group. Griffin’s role included assisting Myers in the strategic analysis of The Lumber Yard XL business, conducting financial modeling of the various acquisition integration scenarios and assisting in negotiating and structuring the terms of the acquisition, among other responsibilities. This resulted in Myers acquiring substantially all of the business and operating assets from the York and Hagerstown locations of The Lumber Yard XL. This acquisition will dramatically increase Myers’ market presence in the south central Pennsylvania and northern Maryland markets and will provide a wider range of products and services to customers in these markets.