Done Deal: BlueLinx wraps up Cedar Creek acquisition
BlueLinx has completed its acquisition of Cedar Creek, the Oklahoma City-based building products distributor.
The combined companies create one of the largest wholesale distributors of LBM products in the industry with total revenue of approximately $3.2 billion in 2017 and more than 70 locations in 40 states.
“We are in an even stronger position to continue to drive growth, deliver differentiated value to our customers and suppliers, and generate strong returns for our shareholders,” said Mitch Lewis, president and CEO of BlueLinx.
Alex Averitt, formerly the CEO of Cedar Creek and recently appointed COO of BlueLinx, said, “The Cedar Creek family is pleased to join forces with BlueLinx, and we are confident that the combination of our companies creates significant value for all our stakeholders. Our deep and unyielding commitment to our customers and focus on organic growth will be the driving force as we achieve our goal of becoming the leading wholesale building products distributor in the United States.”
BlueLinx, with headquarters in Atlanta, Ga., used net proceeds from debt issuance under its amended $750 million revolving credit facility and a new $180 million term loan to fund the purchase price, repay debt and to pay transaction fees and expenses related to the acquisition.
HBSDealer first reported the $413 million deal last month. BlueLinx had sales of $1.82 billion through 39 locations in 2017 while Cedar Creek generated revenue of $1.42 billion through 31 locations.
HBSDealer Stock Watch: More volatility
|There were more decliners than gainers during trading on Friday, with BXC and TSCO leading the retreat — down 3.2% and 3.1%, respectively. Bright spots included HBP, up 1.6%; and WY, up 0.8%.|
|BLDR (Builders FS)||19.20||-0.16%|
|BMCH (BMC Stock)||18.50||-1.60%|
|CENT (Central Garden)||40.49||+0.32%|
|DE (Deere & Co.)||149.98||-0.19%|
|HD (Home Depot)||172.80||-0.32%|
|LL (Lumber Liquidators)||22.54||-1.53%|
|SMG (Scotts Miracle-Gro)||83.11||+0.70%|
|TSCO (Tractor Supply)||58.32||-3.12%|
|UFPI (Universal Forest)||33.02||N.C.|
Allura reopens Indiana facility
Building products manufacturer Allura has reopened its 438,000 square-foot manufacturing facility in Terre Haute, Ind.
The plant produces exterior siding, trim, soffit, and shakes for new residential construction in the Midwest. Shut down in 2014, the factory employs 60 full-time workers. “The lights are back on,” said Allura CEO Jessica Navascues.
The 95-acre property also includes a 9,152 square-foot office building along with railroad spars and storage areas.
Terre Haute Mayor Duke Bennett, Terre Haute Chamber President David Haynes, representatives from Allura’s parent company Elementia and representatives from several homebuilding companies joined Navascues at the ceremony.
“We welcome back Allura with open arms,” Bennett said. “Companies in Indiana make products for the entire nation and we’re certainly thrilled to help do our part in Terre Haute.”
Allura also operates manufacturing facilities in North Carolina, Oregon and Nuevo Laredo, Mexico. The company specializes in fiber cement home building products include natural-looking siding, shakes and shingles, panels and soffit available as an alternative to wood, vinyl and other traditional building materials.