Denver-based TUFF SHED, Inc. has finalized an agreement to purchase rival storage building and garage manufacturer Wood Master, Inc. Privately held TUFF SHED officially acquired Dallas-based Wood Master Wednesday in exchange for an undisclosed amount of cash.
Not including Wood Master sales, TUFF SHED reported 2003 sales revenues of $80 million, making the company the largest (in sales) storage building and garage manufacturer in the United States. Wood Master reported revenues of $26 million in 2003 sales. TUFF SHED is projecting combined sales of $130 million in 2004, marking the first time a storage building and garage manufacturer has topped the $100 million mark in annual sales.
The acquisition, brokered by William A. Chrismer of Chrismer LTD, increases the size of TUFF SHED’s footprint of factories and stores across the United States, and continues TUFF SHED’s recent expansion efforts. The existing Wood Master facilities will allow TUFF SHED to service four new states. Combined with TUFF SHED’s expansion into Ohio and West Virginia in January of 2004, the acquisition increases the company’s service area to 24 states nationwide, including a stronghold in virtually every major market West of the Mississippi River.
The acquisition is another example of TUFF SHED’s significant growth during the last two years. In the two-year period ending December 31, 2003, TUFF SHED had added seven new factories, nine sales locations, and bolstered its number of full time employees by 40 percent since the beginning of 2002. Although some consolidation may eventually occur, the Wood Master purchase gives TUFF SHED an additional ten factories and 150 employees. TUFF SHED can now boast 37 factory locations, 21 company-owned retail sales locations and 950 employees.
TUFF SHED’s preliminary plans include streamlining some front office roles immediately, but continuing normal Wood Master production operations for a period of time before potentially integrating any of the companies’ factory functions. Of the nine states that Wood Master services, only Colorado and Texas currently have TUFF SHED factory locations.
As part of the agreement, Wood Master CEO Bryan Johnson and COO Shane Leath will join TUFF SHED’s management team, headed by TUFF SHED president and founder Tom Saurey. The two former Wood Master executives will split time between offices in Dallas and Denver.
TUFF SHED expects to continue the Wood Master product line and name, capitalizing on the company’s factory locations, distribution channel and brand name recognition. Future plans may include combining some existing factory facilities, as well as introducing TUFF SHED products into existing Wood Master markets where the two companies do not currently overlap.
A significant factor in the deal was both companies’ supplier status with Home Depot. TUFF SHED and Wood Master sell products through Home Depot’s At Home Services program, and are part of a network of six manufacturers that sell installed sheds through Home Depot stores across the country. TUFF SHED began selling its Sundance Series of sheds and carports exclusively at Home Depot locations in select markets in 2003, and within months became the largest shed and carport supplier for Home Depot in the Furnish and Install category, servicing a total of 420 stores with sheds and carports and an additional 152 stores with carports only by January of 2004. With the close of the Wood Master deal, TUFF SHED can now count a total of 647 Home Depot stores in 24 states that sell TUFF SHED storage buildings and carports.
While TUFF SHED also operates its own network of company owned stores, Wood Master distributes its products only through Home Depot. Started in 1990 by Bryan Johnson, Wood Master began distributing its products exclusively through Home Depot in 1996. Wood Master currently operates ten factories in six states, selling its product line through 220 Home Depot stores in Arkansas, Colorado, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Texas and Wyoming.
TUFF SHED’s growth has been propelled by the combination of high quality product, a network of factory and retail operations, full-time professional builders, and centralized engineering, purchasing, and marketing efforts. With this approach, TUFF SHED has been able to provide innovative standard and custom building solutions for residential, commercial and Government Service Association customers. While similar in style and construction, TUFF SHED buildings include several innovative and exclusive features that differentiate them from Wood Master products. TUFF SHED is the only shed builder that includes 2″ x 6″ galvanized steel floor joists, designed in partnership with Allied Studco. TUFF SHED also includes its patented, keyed locking handle on its Premier Series buildings. These features may eventually be incorporated into the Wood Master product line.
Wood Master products include standard and custom storage sheds, pole barns, garages and cabins. Wood Master uses carefully selected building components in each of their backyard storage structures, and stand behind their products with an all-inclusive three-year warranty. Visit www.wood-master.com to view Wood Master product offerings.
TUFF SHED products include the original back yard storage shed, larger commercial storage buildings, garages and carports. The PREMIER product line includes many different styles and sizes with the ability of custom configurations. All Premier Series products include an industry leading seven-year warranty. Quality, American-made steel carports of infinite sizes and applications are also a first line product and carry a one-year warranty. At a lower price point and still readily differentiated from the competition is the SUNDANCE SERIES, which includes a five-year warranty. Sundance Series products are sold exclusively at Home Depot. All products are delivered and built by trained TUFF SHED builders, usually in a day’s time. To view an assortment of innovatively engineered TUFF SHED buildings and products, visit www.tuffshed.com.
*Note: The majority of Home Depot stores in Colorado and Texas currently sell Wood Master sheds and TUFF SHED carports.