Real Estate

Builders FirstSource acquires Pleasant Valley Homes

Builders FirstSourceAmerica’s largest supplier of structural building products, has quietly acquired Pennsylvania-based assets Homes in Pleasant Valleya manufacturer of general home stores.

Lori Conrad, Senior Director of Corporate Communications at FirstSource Builders, confirmed that Builder’s Day that the company acquired the assets of Pleasant Valley Homes in November for an undisclosed price. The transaction was previously reported in a LinkedIn post by Craig Webb, of Webb-Analytics.

Pleasant Valley Homes has about 400 home sales a year, according to Conrad, and operates in ten states in the Mid-Atlantic and Northeast, from Virginia to Maine. A builder sells manufactured homes and custom homes to sellers, builders and developers, as opposed to individual buyers.

“Our goal is to first study this model and be able to measure it later. We will not change the company’s approach to the market and we will not compete with house builders by selling directly to those who want to buy houses,” said Conrad in a statement.

The rapid growth of Builders FirstSource

Builders FirstSource has grown its portfolio significantly in recent years, and now owns more than a dozen brands nationwide. The company announced the acquisition of Premium Building Components in January, and acquired seven companies by 2025, including:

  • Homes in Pleasant Valley
  • OC Cluss Lumber & Building Supplies
  • Tahoe Lumber Company truck
  • St. George Truss Co.
  • Rystin Construction
  • Architect & Trim Department
  • Lengefeld Lumber

Builders FirstSource likewise completed seven acquisitions in 2024 and another seven in 2023. The focus of its acquisition strategy in recent years has been on completing a large volume of small deals, in an effort to expand its scope and customer base.

The company, according to Web AnalyticsThe Construction Supply 150, the fourth largest construction products supplier in the country in 2024, ranked behind. The Home Depot, Lowe’s again ABC supply.

Builders FirstSource, which primarily sells to home builders, contractors and remodelers, sells a wide variety of prefabricated components, such as wall panels, front-hung doors, roof and floor trusses, stairs and pre-cut framing systems. The purchase of Pleasant Valley Homes will add to the company’s existing offering.

“This investment represents an extension of our pre-fab strategy to address challenges facing the home building industry, such as affordability and access to labor, with a low-cost, factory-built option that reduces builder cycle times. We plan to use the industry’s available strengths to provide high-quality, modular modular plans to our customers and other potential home builders to grow our existing home builder, BFS markets in the future,” said Conrad.

Pleasant Valley Homes operates a 140,000-square-foot manufacturing facility and a 10,000-square-foot showroom in central Pennsylvania, where the manufacturer displays its three-bedroom, two-bathroom home models.

M&A in the construction materials industry begins

The highly fragmented $800 billion construction materials industry is consolidating, with big players finding smaller rivals.

We have been tracking this. In 2021, as Builders FirstSource announced its agreement to pay $450 million to acquire construction product software solutions and services provider, WTS Paradigm, LLC (“Paradigm”), Builder’s Day report:

Strategic investments that bring applied technology and data to increase – not replace – members of the community that bring profit to the building value chain, such as LP Building Solutions’ investment in Entekra, Saint-Gobain brand CertainTeed’s strategic partnership with Bensonwood, PulteGroup’s purchase of Jacksonville, Fla.-based ICGs to Claink-operator of the Clayton site Clailup Homes’s flat-based ICGs, and the Clailt-ups empire of manufactured home buildings, reflect the beliefs of that line of thinking.

Strategic integration and collaboration like this reflects the belief that better alignment – a bee line from what buyers value back through the end-to-end construction life cycle – and not a complete renovation will not only improve housing construction and remodeling, but will improve the home buyer’s and residents’ accessibility and purchasing experience..”

Last year, Home Depot found GMS Inc.Lowe’s has been purchased Basic Building Materials again Artisan Design Group and ABC Supply taking ownership of Roofing & Supplies, Inc.

QXOis the sixth largest supplier of construction materials, and has an ambitious goal of increasing annual revenue from $10 billion to $50 billion by 2030 to 2035.

The Brad Jacobs-backed company plans to grow through a mix of acquisitions and organic growth, and now has an estimated $9 billion to $10 billion war chest for acquisitions, based on estimates from William Blair analyst Ryan Merkel. The company’s next acquisition announcement is expected on July 15.

The Webb Analytics 2025 Deals Report, released on Monday, concluded that 2025 was the busiest year for M&A in the construction materials industry this decade, when the number of acquired facilities is calculated. According to the report, there has been a 56% annual increase in the number of institutions acquired by 2025.

However, the total number of deals is down 30% from last year, and 2025 sees fewer companies making purchases than any year since 2020. That’s because megadeals dominated last year, with four of the 120 deals comprising 85% of the supply chain acquired, according to Craig Webb, President of Webb Analytics.

Home Depot and Lowe’s were responsible for those three deals, as well as the QXO acquisition Beacon Building Supply it was the fourth megadeal since 2025. This trend shows that large construction equipment operators are increasingly dominating the sector’s M&A landscape.

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