BIDDEFORD — Deering Lumber of Biddeford and New England Building Materials of Sanford announced at press time this morning that the two parties have signed a letter of intent whereby Deering would acquire some assets of NEBM’s business, according to Deering Lumber President C.D. Armstrong.

After the sale is completed, Deering, which traces its roots to 1866, will operate the building supply business in Sanford and NEBM will operate the Sanford sawmill.

There are some details still to be completed and a further announcement will be made when the transaction is complete, Armstrong said in a brief prepared statement.

“Both parties are working to facilitate a smooth transition to retain NEBM staff and augment customer services,” said Armstrong. “As soon as the transaction is complete, Deering Lumber has plans to rapidly increase the lumber and building supply inventory available at the Sanford location.”

The announcement comes just four months after NEBM closed its Springvale and Windham retail stores and sold three mid-coast stores to Hammond Lumber.

NEBM was known as Lavalley Lumber until 2009. The company, which began operations as a lumber mill by the Lavalley family 60 years ago and later expanded into the retail field, was acquired in 1999 by United Ventures, LLC, a private holding company. Two years ago, the company purchased three of the former Stock Building Supply operations in Massachusetts. At the same time, the company changed its name to New England Building Materials.

Deering Lumber operates in two locations: Biddeford and Kennebunk.

Rumors of the transaction began to surface last week, but officials of both companies remained mum until today.

— Senior Staff Writer Tammy Wells can be contacted at 324-4444 or twells@journaltribune.com.