As the super merger between Builder FirstSource and BMC Stock Holdings draws nearer, the companies issued an update that demonstrates the potential of their joined forces.
Combined sales for Builders FirstSource and BMC in the third quarter were $3.4 billion, with average year-over-year sales growth of 14.5% for the period. Sales for the last 12 months have grown 7.5% to $11.7 billion.
The companies’ combined adjusted EBITDA has grown 24% to $283.2 million in the third quarter while rising 9.4% to $859.8 million in the last 12 months.
BMC and BuildersFirstSource, in a Nov. 6 filing with the Securities and Exchange Commission also pointed out that two companies have generated $362 million in net cash flow from operating activities through the first three quarters of 2020.
“We believe the combination of our exceptional organizations is a transformational step forward for both Builders FirstSource, BMC, and the industry as a whole,” the companies said in their SEC filing. “Through this merger, we are bringing together two strong companies with complementary capabilities and cultures.”
First announced on Aug. 27, terms of the agreement call for BMC shareholders to receive a fixed exchange ratio of 1.3125 shares of Builders FirstSource common stock for each share of BMC common stock.
Upon completion of the merger, existing Builders FirstSource shareholders will own approximately 57% and existing BMC shareholders will own approximately 43% of the combined company on a fully diluted basis.
The deal is expected to close by the end of this year or early 2021.