ENAP, Inc. and Progressive Affiliated Lumbermen Cooperative, Inc. (PAL) Sign Letter of Intent to Merge
New Cooperative Provides $1.5 Billion Combined Purchasing Power
Lumber & Building Material buying cooperatives PAL and ENAP, Inc. today announced they have signed a non-binding Letter of Intent to merge. The companies enjoy strong dealer support in the Midwest and East markets, respectively.
The Letter of Intent is non-binding and the merger requires approval by the shareholders of both cooperatives as well as satisfactory completion of due diligence.
“This transaction is extremely positive for members and employees alike,” stated Steve Sallah, ENAP President and CEO. “The new cooperative will have a combined purchasing power of $1.5 billion dollars annually and will improve our ability to execute our mission of creating a competitive advantage for our member-dealers.”
PAL was formed in 1937, and ENAP in 1967. Moving forward, the combined membership will span 33 states and include 447 member companies operating 742 lumber yards.
PAL’s CEO and President Paul Dean agreed, “This merger is a great fit for both organizations and will provide instant access to new products and programs. ENAP and PAL have a strong history of serving our markets, and our combined size will provide even more opportunities for our members, employees and vendor partners.”
ENAP Chairman Lang Durfee of Bethel, Vt.-based Bethel Mills offered his support: “The time is right for this merger as PAL and ENAP are both solid, growing & profitable. The dealer landscape, however continues to rapidly consolidate, and this merger opportunity will be a win-win as we will further increase the leverage and the rebates to our member-owners.”
PAL Chairman Morrie Smith of Lansing, Mich. – based Hazen Lumber Company added, “By combining our effort, and with our new shared resources we’ll provide more value-added services including cutting-edge technology. As consumers continue to be more digitally sophisticated, this will be critical for our members.”
A new cooperative will be created that encourages independent affiliations for its members and earns the loyalty of its members by creating a competitive advantage for them. “Through partnerships and enhanced programs, we want our members to make their own purchasing decisions and offer choices, not restrictions, as part of our cooperative platform,” noted Dean.
Steve Sallah will be President and CEO of the new company; Paul Dean will be Executive Vice President. The balance of the leadership team will include Vice Presidents and managers from both organizations. A first quarter 2015 close on the merger is expected as both parties enter the due diligence process.
Collectively, ENAP and PAL will operate out of three locations in New Windsor, N.Y., Grand Rapids, Mich., and Monroe, La. The new company will further utilize these locations to provide a national footprint with regional expertise as it continues its geographic expansion.
News release provided by Progressive Affiliated Lumbermen, Inc.