Santa Monica-based Angeles Equity Partners and Clearlake Capital Group are picking up the pace of acquisitions in the lumber and building materials market.

The private equity firms have teamed up for nine deals in the space since forming American Construction Source, a portfolio consolidating company, in late 2018.

Angeles and Clearlake created Springfield, Mo.-based American Construction Source with the goal of building a leading national building materials distribution platform for custom homebuilders and repair and remodel contractors.
 
While the company’s pace of acquisitions slowed during the pandemic, its sales did not.
 
American Construction Source has seen steady revenue growth over the past three years, from $566.3 million in 2018 to $640.7 million in 2019 and $703.2 million last year, according to ProSales, a trade magazine for building supply dealers and distributors.
 
Sales have reflected the strength of the housing market, which has seen low mortgage interest rates drive buyer demand. Overall, housing starts increased 19.4% to 1.74 million units, according to a report from the Department of Housing and Urban Development and the Census Bureau. This was the fastest pace for combined single-family and multifamily construction since June 2006.

American Construction Source serves residential builders, with a focus on custom homebuilders, repair and renovation contractors, and sophisticated do-it-yourself consumers.

In April, American Construction Source announced the acquisition of Foley Lumber and Milaca Building Center. Minnesota-based Foley and Milaca, established in the 1930s, will operate under their existing brand names.

And in January, American Construction Source bought Wisconsin-based Builder’s Resource Group. It will operate under the Arrow Building Center brand. Arrow, which was established in 1903, was purchased by Angeles Equity and Clearlake in November 2018. Also in 2018, American Construction Source acquired Meeks Lumber Co. in Springfield, Mo., and Edwards Building Center and Breckenridge Building Center, both based in Colorado.

In February 2020, American Construction Source bought Homewood Holdings, which operates in Northern California, Washington and Arizona.
 
In July, the company picked up Weaver Lumber, a specialty installation services company established in Northern California in 1963.

Because construction was classified as an essential business during the Covid-19 pandemic, American Construction Source said, deal opportunities remained strong.