Key Stats
Founded: 2006 (as ProBuild Holdings); 1997 (Strober Organization acquired)
Headquarters: Denver, Colorado, USA
Former Owner: Devonshire Investors (Fidelity Investments)
Peak Locations: 506 (2007)
Peak Revenue: $6 billion (2006)
Status: Acquired by Builders FirstSource (July 31, 2015) for $1.63 billion
ProBuild Holdings, Inc. was a privately held American distributor of lumber, building materials, and related products primarily serving professional builders, contractors, and remodelers across the United States. At its peak in 2006-2007, ProBuild operated more than 500 locations in over 40 states and ranked as the largest professional building materials dealer in the nation.
The company was created in 2006 by Devonshire Investors, the private equity arm of FMR LLC (parent company of Fidelity Investments), through the merger of the Strober Organization with Lanoga Corporation, then the third-largest professional building materials dealer in the country. ProBuild’s strategy was to provide unprecedented national coverage for large homebuilders while operating through established regional brands that maintained local relationships. The company sold lumber, plywood, engineered wood, gypsum wallboard, millwork, trusses, roofing, siding, insulation, windows, doors, and hardware products.
ProBuild’s fortunes were closely tied to the U.S. housing market. The 2008 financial crisis and subsequent collapse in housing starts devastated the company, cutting revenues from $6 billion in 2006 to $3 billion by 2009. Devonshire Investors reportedly invested hundreds of millions of dollars to keep ProBuild afloat, including $345 million in just six months during 2009. The company consolidated facilities, exited markets including Chicago and Pittsburgh, and filed for Chapter 11 bankruptcy reorganization in 2010 before emerging through debt restructuring. By 2014, ProBuild had recovered to approximately $4.5 billion in annual revenue. On July 31, 2015, Builders FirstSource acquired ProBuild for $1.63 billion, creating a combined entity with over $6 billion in annual revenue and more than 430 locations.
ProBuild History
1997
Fidelity Acquires Strober Organization
Devonshire Investors (Fidelity Capital), the business development arm of Fidelity Investments, acquires the Strober Organization, a leading supplier of building materials to professional builders and contractors in the Northeast. Strober is taken private and begins an aggressive acquisition strategy under CEO Fred Marino.
1997-2005
Strober Expansion
Strober acquires regional brands including Haddonfield Lumber (1998), Moore’s Lumber and Building Supplies (2004), and Northlake Lumber (2005), extending its reach from the Northeast to the mid-Atlantic and Southeast. By 2005, Strober is one of the largest professional building materials dealers in the U.S.
February 2006
ProBuild Holdings Formed
Devonshire Investors creates ProBuild Holdings Inc. and acquires Lanoga Corporation, the nation’s third-largest professional building materials dealer, for approximately $1.1 billion. Lanoga operated 320 centers in 24 midwestern and western states under brands including United Building Centers, Spenard Builders Supply, and Dixieline.
June 2006
Hope Lumber Acquired
ProBuild acquires Hope Lumber and Supply Co., based in Broken Arrow, Oklahoma, for approximately $548 million. Hope operated 49 yards and five component plants in nine southeastern and south-central states, providing ProBuild with coverage in markets where it previously had little presence.
2006-2007
Peak Operations
ProBuild reaches its zenith with 506 locations, 17,000 employees, and $6 billion in annual revenue, becoming the largest professional building materials dealer in the United States. The company acquires F.E. Wheaton, Wolohan Lumber, Dunn Lumber, and the HD Supply lumber unit.
2008-2010
Housing Crisis & Restructuring
The housing market collapse devastates ProBuild. Revenue falls from $6 billion to $3 billion. The company consolidates facilities, exits markets including Chicago and Pittsburgh, and files for Chapter 11 bankruptcy in 2010. Devonshire invests $345 million in just six months during 2009 to cover losses. ProBuild emerges from bankruptcy through debt restructuring.
2013-2014
Recovery
ProBuild benefits from the housing market recovery beginning in 2012. By 2013, the company reports a 9% increase in sales from the prior year. Revenue recovers to approximately $4.5 billion by 2014, with over 450 locations serving 45 states. ProBuild ranks as the second-largest LBM dealer behind ABC Supply.
July 31, 2015
Builders FirstSource Acquisition
Builders FirstSource completes its acquisition of ProBuild Holdings for $1.63 billion in an all-cash transaction. The combined company becomes the largest professional building materials dealer in the U.S. with approximately $6.1 billion in combined 2014 revenue and over 430 locations in 40 states.
Ownership & Leadership
ProBuild was created and owned by Devonshire Investors, the private equity investment arm of FMR LLC, which is the parent company of Fidelity Investments.
Devonshire Investors / Fidelity Capital
Devonshire Investors (also known as Fidelity Capital) was the business development arm of Fidelity Investments, one of the world’s largest asset managers. The firm invested in private companies across various industries. Devonshire’s involvement with the building materials industry began in 1997 when it acquired the Strober Organization. Over the next decade, Devonshire invested heavily in building a national dealer network, spending approximately $1.1 billion on Lanoga and $548 million on Hope Lumber in 2006 alone. Following the 2008 housing crash, Devonshire reportedly invested hundreds of millions more to sustain ProBuild through the downturn, including $345 million in just six months during 2009. After ProBuild emerged from bankruptcy and recovered, Devonshire hired Credit Suisse in late 2014 to explore a sale, ultimately accepting Builders FirstSource’s $1.63 billion offer in 2015.
Key Executives
Fred Marino served as CEO and Vice Chairman when ProBuild was formed in 2006. He had previously led the Strober Organization through its expansion. Marino oversaw the aggressive acquisition strategy that created ProBuild’s national footprint.
Paul Hylbert was named ProBuild CEO in January 2007 and served as Chief Operating Officer during the company’s formation. He led ProBuild through the housing crisis and restructuring period.
Robert Marchbank served as CEO at the time of the Builders FirstSource acquisition in 2015. He stayed on as part of the leadership team to support integration planning during the transition.
Acquisitions & Regional Brands
ProBuild was created through more than 70 mergers and acquisitions, operating through established regional brands that maintained local identities and customer relationships.
The major acquisitions that formed ProBuild’s national network included:
- Lanoga Corporation (February 2006, ~$1.1B) – Third-largest U.S. dealer with 320 centers in 24 midwestern and western states. Brands included United Building Centers, Spenard Builders Supply (Alaska), Lumbermens, Home Lumber Company, Dixieline Lumber (Southern California), and Parker Lumber.
- Hope Lumber and Supply (June 2006, ~$548M) – 49 yards and five component plants in nine southeastern and south-central states, based in Broken Arrow, Oklahoma.
- F.E. Wheaton & Company (2006) – Regional dealer acquired as part of the expansion wave.
- Wolohan Lumber (2006) – Regional dealer in the Midwest.
- HD Supply Lumber & Building Materials (2007) – 19 lumberyards in Atlanta and 20 in Florida, acquired from HD Supply (which had purchased the unit from Home Depot).
- Dunn Lumber (2007) – Seven-unit pro dealer in Daytona Beach, Florida.
The Strober Organization brands that formed ProBuild’s eastern operations included Strober Building Supply, The Contractor Yard, and U.S. Components (truss and panel manufacturing).
ProBuild Revenue
ProBuild’s revenue trajectory reflected the dramatic boom and bust of the U.S. housing market in the 2000s.
ProBuild Competitors
ProBuild competed with other national and regional lumber and building materials (LBM) dealers serving professional builders and contractors.
| Company | Headquarters | Notes |
|---|---|---|
| Builders FirstSource | Dallas, TX | Acquired ProBuild in 2015 |
| ABC Supply | Beloit, WI | Specialty dealer (roofing/siding focus) |
| 84 Lumber | Eighty Four, PA | Family-owned, woman-owned dealer |
| BMC Stock Holdings | Atlanta, GA | Merged with Builders FirstSource in 2021 |
| US LBM Holdings | Buffalo Grove, IL | Fast-growing through acquisitions |
| Stock Building Supply | Raleigh, NC | Merged with BMC in 2015 |
| Carter Lumber | Kent, OH | Independent regional dealer |
| Beacon Roofing Supply | Herndon, VA | Specialty dealer (roofing focus) |
| L&W Supply | Chicago, IL | Drywall and interior products |
| Home Depot / Lowe’s | Various | Retail-focused but pro divisions compete |
FAQs
What happened to ProBuild?
ProBuild was acquired by Builders FirstSource on July 31, 2015, in an all-cash transaction valued at approximately $1.63 billion. The acquisition created the largest professional building materials dealer in the United States at the time, with combined 2014 revenue of approximately $6.1 billion and over 430 locations across 40 states. The ProBuild name was eventually phased out as operations were integrated into Builders FirstSource.
Who owned ProBuild?
ProBuild was owned by Devonshire Investors, the private equity investment arm of FMR LLC, which is the parent company of Fidelity Investments. Devonshire began investing in the building materials distribution industry in 1997 when it acquired the Strober Organization, and created ProBuild Holdings in 2006 through the merger of Strober with Lanoga Corporation.
Why did ProBuild struggle during the financial crisis?
ProBuild’s business was heavily dependent on residential construction, and the 2008 financial crisis caused a catastrophic collapse in U.S. housing starts—from 1.28 million units in 2007 to just 554,000 units in 2009. This slashed demand for lumber, windows, doors, and other building materials. ProBuild’s revenue dropped from $6 billion in 2006 to $3 billion by 2009. The company filed for Chapter 11 bankruptcy in 2010 but emerged through debt restructuring and asset sales.
What brands did ProBuild operate?
ProBuild operated through numerous regional brands acquired over the years, including: Strober Building Supply, The Contractor Yard, United Building Centers, Spenard Builders Supply (Alaska), Lumbermens, Home Lumber Company, Dixieline Lumber Company (Southern California), Parker Lumber Company, F.E. Wheaton & Company, Hope Lumber, and U.S. Components. Many of these brands continued to operate under their local names even after becoming part of ProBuild.
How did ProBuild compare to Builders FirstSource before the merger?
Before the 2015 acquisition, ProBuild was larger than Builders FirstSource. ProBuild had approximately $4.5 billion in revenue and over 400 locations in 40+ states, ranking as the second-largest LBM dealer (behind specialty dealer ABC Supply). Builders FirstSource had approximately $1.6 billion in revenue and operated 56 distribution centers primarily in the southern and eastern United States. The merger nearly quadrupled Builders FirstSource’s size and gave it coast-to-coast coverage.