Markel CEO sees huge potential in latest acquisition deal
Markel co-CEO Tom Gayner says that the company sees huge potential in the "transformational acquisition" of Lansing and Harvey distribution businesses in the US.
Specialty insurer Markel Corporation has entered into a definitive agreement to acquire a majority interest in Lansing Building Products. Simultaneously, Lansing entered into a definitive agreement to acquire the distribution business of Harvey Building Products. Both transactions are expected to close in the second quarter of 2020.
Through its subsidiary Markel Ventures, Markel makes investments in businesses that operate outside of the insurance marketplace.
"Several months ago, when the Lansing team reached out to us to be their partner, we were immediately interested," said Gayner. "The combined talents of Lansing and Harvey allow us to tackle the 'right now' work that comes with such a transformational acquisition. More importantly, the shared values of the entire group provides great 'forever' potential."
Lansing Building Products supplies exterior building products and materials to professional contractors throughout the US. Established in 1955 in Richmond, Virginia, as Ted Lansing Supply Company, Lansing is a third generation family-owned and operated building products distributor. The acquisition of Harvey, headquartered in Waltham, Massachusetts, will enhance the geographic reach and scale of Lansing, increasing its network to 113 branches (from 77) operating across 35 states.
"Lansing and Harvey are an unparalleled team to lead the industry. We look forward to welcoming Harvey's associates, customers, and suppliers to the Lansing family. Our commitment to Respect, Service and Excellence will remain at our core," said Hunter Lansing, president and CEO of Lansing Building Products.
Jim Barreira, chairman of the Board of Harvey Building Products, added: "This partnership places us in a powerful position of strength to lead the building products industry and to set a new bar of what it means to deliver a best-in-class experience for our associates and customers."
"As we examined a potential partnership with Harvey, we knew a strong financial partner would best accelerate this opportunity as well as other plans for future growth. We are thrilled to join forces with Markel Ventures and learn from its talented team. The combination of Lansing, Harvey and Markel brings together three companies that all began humbly as family-owned businesses. And now we have an even greater opportunity to create the next generation of success."
