Boise Cascade Acquires 15th Door & Millwork Location in Florida

Core Viewpoint - Boise Cascade Company (BCC) has completed the acquisition of the Parksite door shop in Lakeland, FL, marking the addition of its 15th millwork location, which is expected to enhance its millwork business in the Southern region and expand customer reach [1][3]. Company Expansion - The acquisition specifically involves the Florida door shop location among 22 total locations, allowing BCC to strengthen its presence in the millwork sector [3]. - The newly acquired facility offers a wide range of premium entry and decorative glass doors, with plans to expand the product offerings to include Simpson and interior flush and molded doors [4]. - The new Florida millwork location will operate alongside BCC's existing facility in Milton, FL, enabling the distribution of Therma-Tru products throughout Florida [5]. Business Model and Growth Strategy - BCC operates a vertically integrated business model across two segments: Wood Products and Building Materials Distribution (BMD), with the BMD segment comprising 38 distribution facilities, including 14 door and millwork locations [6]. - The growth strategy for the BMD segment focuses on expanding products and services, increasing market penetration through acquisitions, and identifying scalable adjacent distribution platforms [6][7]. - Recent acquisitions include a door and millwork operation in Boise, ID, for $3.5 million and Brockway-Smith Company (BROSCO) for $166.2 million, which has supported sales volume growth in the BMD segment [7]. Market Performance - BCC's stock experienced a 2% decline following the announcement of the acquisition [2]. - Over the past three months, BCC shares have increased by 11.7%, outperforming the Zacks Building Products - Wood industry's growth of 10.7% [9]. - The company's focus on expanding its engineered wood products (EWP) and millwork lines, along with investments in distribution and manufacturing, is expected to drive future growth [9].