Great Southern Wood Preserving of Abbeville, Alabama, and Atlanta-based U.S. Lumber form alliance to expand distribution footprint

ABBEVILLE, Alabama , February 25, 2011 (press release) – Great Southern Wood Preserving, Inc., the nation’s largest producer and distributor of pressure-treated lumber products and U. S. LUMBER Group, LLC, the Southeast’s leading specialty building materials distributor, today completed a strategic alliance and innovative marketing and operations model that will expand the geographic distribution footprint of both companies, give customers the benefit of new economies of scale, and create new growth momentum for both companies and their employees.

Officers of both companies said that the move is representative of the ongoing commitment both companies have to providing world-class products and services to the building materials industry.

“This is an exciting development for both companies, our employees and customers,” said Jimmy Rane, chairman, president and chief executive officer of Great Southern Wood Preserving, Inc. “It will create a vehicle for growth at a time when the economy in general and new housing starts in particular continue to struggle.”

This initiative will allow both companies to bring an expanded range of products to more customers more quickly, and to aid customers with inventory management through the combined expertise in logistics and purchasing of both firms and their affiliates, Rane noted.

Lawrence Newton, chief executive officer of U.S. LUMBER, said the alliance of the two companies is a natural one for many reasons. “Both U.S. LUMBER and Great Southern Wood have an extensive track record of serving customers with exceptional levels of personalized customer service. We share values and a work ethic that will translate into opportunities for our employees, value for our customers, and growth for our suppliers.”

The agreement opens up new markets to both companies. Great Southern will gain new markets for its well-known YellaWood® brand products through U. S. LUMBER’s distribution network, expanding in mid-Atlantic states. At the same time, U. S. LUMBER will widen its reach by making its broad range of specialty products available in Great Southern’s extensive dealer base in the Midwest, Southwest and the Caribbean.

Under the new alliance, an affiliate of Great Southern will become a minority investor in U.S. LUMBER and customers of both companies will leverage the benefits of increased volume purchasing and sharing of “best practices.” No jobs will be adversely affected, nor are management changes anticipated.

Rane and Newton said both companies are working together on a number of initiatives to be launched in the coming months.

About Great Southern Wood Preserving, Inc.

Established in 1970, Great Southern Wood Preserving, Inc., services D-I-Y retail home centers, pro dealers and other retail building related segments from 11 facilities throughout the South and Midwest. The company, based in Abbeville, AL is best known to consumers as the maker of YellaWood® brand pressure treated pine. YellaWood® brand products are easily identifiable by a distinctive yellow tag and have long been recognized by consumers, professional builders, architects and specifiers for quality and dependability. From fence products, columns, deck specialties, kiln-dried after treatment (KDAT) products and other specialty items, YellaWood® is the brand of choice for outdoor building.

About U. S. Lumber Group, Inc.

Established in 1987, and based in Atlanta, U.S. LUMBER has grown to cover 15 southeastern and mid-Atlantic states with branches in Atlanta, Greenville, Raleigh, Nashville, Jacksonville, Mobile, and Baltimore. The company carries the largest, broadest, and deepest specialty product inventory position in the country, specializing in exterior trim products, interior millwork, pattern stock, flooring, siding, and decking. MDF, PVC, and fibercement composites compliment a product mix that serves new home construction as well as remodeling, repair, and redesign. U.S. LUMBER is known in the market for consistently delivering the highest level of personalized service in the industry.


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