Minnesota-based lumberyards Foley Lumber and Milaca Building Center (collectively “the Companies”) have been acquired by leading national building materials distribution platform American Construction Source (ACS). CLA (CliftonLarsonAllen) served as the exclusive financial advisor to Foley Lumber and Milaca Building Center.
Foley and Milaca are lumber and building material (LBM) retailers located in the towns of Foley, Minnesota, and Milaca, Minnesota. The Companies serve a range of customers comprising professional contractors, custom homebuilders, as well as DIY consumers. Key to the Companies’ success has been their service-oriented approach to business, driven by their talented employee teams. Their sales, support, and yard staff comprise knowledgeable, professional individuals with many years of hands-on experience.
American Construction Source is an LBM distributor with 70+ locations in nine states serving the needs of custom home builders, repair and remodel contractors, and DIY consumers. ACS provides lumber and building materials businesses the resources, leverage, and focus to make their ideas happen. Recognizing the value and heritage of deep, local customer relationships as a strong foundation for growth, ACS’s best practices are designed to leverage shared strengths, drive operational excellence, and motivate performance to create a leading building products distributor with a national footprint and the industry’s best customer experience.
Foley and Milaca are owned and operated by cousins Chris Kotsmith and Randy Kotsmith. The businesses have been owned by the Kotsmith family for four generations. On the sale to ACS, Chris and Randy were enthusiastic about the expanded opportunities the new ownership would provide for their customers and employees.
“We are confident ACS is the best partner to help accelerate growth by delivering more value-added products and an expanded portfolio of services in North Central Minnesota and the greater Minneapolis-St. Paul metro area,” said Chris Kotsmith and Randy Kotsmith. “We’re in awe of the talent of the CLA team that was assembled. Every day was a learning experience and CLA impressed us with their ability to problem-solve. Everyone worked together to make the end result very successful for our family-owned business.”
“Finding the right buyer was very important to Chris and Randy,” said Paul Novak, managing director in CLA’s investment banking group. “ACS saw the value in what the Kotsmith family had built over generations, and just as importantly, was best positioned to grow the business and create additional opportunities for Foley and Milaca’s employees into the future.”
Legal counsel for Foley and Milaca was provided by Ryan Gerads, Edward “Teddy” Fleming, and Meaghan Kwan of Lathrop GPM LLP. Quality of Earnings advisory was provided by CLA and led by Craig Arends and Katelyn Kerfeld. Tax advisory was provided by Aaron Traut of CLA.
CLA investment banking professionals provide sophisticated corporate finance advisory and investment banking services to lower middle-market businesses and owners. The practice’s services include mergers and acquisitions, recapitalizations, and other transaction-related advisory services.
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Securities products, merger and acquisition services, and wealth advisory services are provided by CliftonLarsonAllen Wealth Advisors LLC, a federally registered investment advisor and member FINRA, SIPC.
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