Hammond Lumber Company announced Tuesday it will buy competitor Ware-Butler Building Supply for an undisclosed price.

The deal will close July 31, Hammond Lumber, one of Maine’s largest companies, said in a news release. All Ware-Butler employees will be offered continued employment in a nearby location, the company said, bringing the total number of Hammond Lumber employees to about 1,200.

“This is a meaningful opportunity to continue a legacy shaped by trust and long-standing relationships,” said Mike Hammond, the president and CEO of Belgrade-based Hammond Lumber. “In the months ahead, we’ll be focused on listening, learning, and supporting the people and communities who have built these businesses.”

Ware-Butler was founded in Waterville in 1925 and operates 15 stores across Maine, from Greenville to Gorham. As part of the sale, 12 of those 15 locations will remain open and shift ownership to Hammond Lumber in the coming weeks, including the Waterville and Madison locations. The Orrington, Dixfield and Greenville locations will consolidate into other nearby stores.

Neither company returned calls for comment Tuesday.

Sheena Bunnell, a professor of business and economics at the University of Maine at Farmington, said acquisitions like this one can serve to streamline a business’ process from factory to consumer, which could help Hammond Lumber lower costs for contractors, developers and homebuilders. Hammond Lumber, being a Maine-based, family-owned company, is especially well-positioned to pass along savings to consumers, she said.

“You get shared services, you have better locations, better access to consumers for their products and services,” Bunnell said. “And ultimately, given Hammond Lumber’s philosophy, I’m hopeful that they will really focus on the people and communities and pass along savings to the final consumer.”

Bunnell also said the acquisition could help Hammond Lumber deal with increasing costs in the lumber industry, given President Donald Trump’s tariffs on Canadian imports.

“This acquisition can help Hammond Lumber face the headwinds of globalization, and can really create a strong, Maine-based company that should be sustainable for the long run, as we face a lot of global pressures and competition,” Bunnell said.

The sale was brokered between Hammond Lumber and Pleasant River Lumber, which acquired Ware-Butler in 2020. Along with Ware-Butler’s retail locations, the sale includes a wall panel factory in Stillwater and two metal roofing production lines — additions the company said will help meet rising demand for prefabricated building components.

Other operations owned by Pleasant River, including its two sawmills in Enfield and Dover-Foxcroft, were not part of the sale.

“We have a deep respect for Hammond Lumber Company and the values they stand for,” Jason and Chris Brochu, the co-presidents of Pleasant River Lumber, said in the news release. “This was a thoughtful and deliberate decision, and we’re confident that Hammond is the right long-term steward for the Ware-Butler team, its customers, and the communities they serve. We look forward to seeing the continued success of the company under their leadership.”