FORT WORTH, Texas — Conner Industries, Inc., a national lumber products and wooden crate manufacturer, says it has received from existing investors additional growth capital which, when added to an investment made in April 2017, totals $10 million.
The capital infusion will be used to recruit experienced lumber sales people and to upgrade Conner’s re-manufacturing plants, and to finance strategic acquisitions.
Conner specializes in supplying cut lumber (softwoods, hardwoods, and panel woods) needed for pallet, crate and skid parts, and fully assembled products, such as pallets, crates, skids and industrial containers. Conner services its customers nationwide from manufacturing plants located in 10 states.
In April Conner announced that it had received a substantial growth capital investment from Argentum and other existing investors, as well as a group of new investors. Members of Conner’s management team, including its Chairman, CEO and certain executives, also invested personally in the round of financing. Conner also announced that its senior lender, Wells Fargo, has renewed an $18 million line of credit.
Earlier in 2017 Conner completed two acquisitions – Golden Triangle and Continental Timber – and now has more than 500 employees and services over 1,900 customers nationwide, and processes/sells more than 300 million board feet annually. Conner says it is poised for growth, and is actively seeking experienced lumber sales personnel, lumber buyers and packaging specialists to join its team.
Conner also announced that its Board of Directors has named David A. Dixon Chief Executive Officer. Previously, Dixon was the Chief Financial Officer of The Crosby Group, a company owned first by Melrose PLC, a U.K. private equity firm, and then by KKR. Dixon was also the CEO of Dill Air Controls, a former Eaton Corp division; the Global Controller at John Zink Company, a Koch Industries’ holding; and most recently he served as the Interim CFO at Texas Hydraulics, a former Dover Company division, purchased by Wynnchurch Capital, a private equity firm.
Lawrence B. Burrows previously served in a variety of senior executive positions within the Weyerhaeuser Company (NYSE: WY) including Senior Vice President of Wood Products, CEO of Weyerhaeuser Real Estate Company (WRECO), and President of Winchester Homes.
Douglas Robinson previously served as President, International Operations of Lowe’s Companies (NYSE:LOW); President & CEO of Beaver Lumber; and Vice President Purchasing of 84 Lumber Company.
Gregory P. Taylor previously served as Executive Vice President Global Field Operations of, and led the commercial growth and go-to-market strategy for, Triple Point Technology, a global commodity management solution for trading, risk and supply chain, which was sold to a strategic buyer for $900 million.
The Board of Conner Industries is now comprised of Walter Barandiaran, Larry Burrows, William DeArman, Douglas Robinson, Elliot Zeelander and Gregory Taylor.
“I am very pleased to have three highly accomplished and experienced senior executives join the Board of Directors of Conner Industries,” said Walter Barandiaran, Chairman. “Their extensive experience and domain expertise in two critical areas, the lumber industry and building and managing sales organizations, should be extremely valuable to our CEO, as David crafts a strategic path for Conner’s growth and expansion."
“We welcome Larry, Doug and Greg to the Board of Conner and I am looking forward to their advice and guidance, and to working with each of them to continue to position Conner as a significant player in the lumber industry,” said David Dixon, CEO. “We are also gratified by the financial support from Conner’s new financial backers and the continued confidence from its existing shareholders who continue to invest in the growth and future of the Company,” added Mr. Dixon.
“Conner’s focus on its customers, coupled with the strategic geographic footprint of its re-manufacturing plants, is a powerful competitive advantage,” commented Larry Burrows, Director. “This positions Conner to service their customers’ growing needs with quality products and just in time delivery,” added Mr. Burrows.
“The lumber processing and packaging market segment is highly fragmented and is comprised of smaller, inefficient operators. Conner has a great opportunity to consolidate this market segment and secure a strong and commanding position in the industry with a much larger geographic footprint,” commented Doug Robinson, Director.
“Conner has an amazing sales culture, and a wonderful, highly-committed customer culture,” commented Greg Taylor, Director. “Effectively managing and growing its sales team is of strategic importance to the growth and profitability of Conner, and I look forward to advising David on building and managing his sales team,” added Mr. Taylor.