BlueLinx booms with Cedar Creek acquisition
BlueLinx, the Atlanta-based building products distributor, is acquiring wholesale distributor Cedar Creek in a $413 million deal.
The combined companies will offer more than 50,000 branded and private label SKUs, as well as a distribution footprint of 70 national locations servicing 40 states, according to a statement issued by BlueLinx.
The new company will also service nearly 15,000 national, regional and local dealers; specialty distributors; national home center chains; industrial customers; and manufactured housing customers.
Publicly traded BlueLinx (BXC) is paying about $345 million in cash and approximately $68 million in the agreed value of capital leases for Oklahoma City, Okla.-based Cedar Creek, which is owned by Charlesbank Capital Partners.
BlueLinx said the transaction has been unanimously approved by its board of directors and is expected to close within 45 days. BlueLinx and Cedar Creek’s combined revenue was $3.2 billion in 2017.
“Cedar Creek’s commitment to organic growth and its customers as well as its track record of successful acquisitions make it an ideal partner for BlueLinx,” said Mitch Lewis, president and CEO of BlueLinx. “The combination will significantly enhance our product portfolio by providing greater breadth and depth of building products and services for our customers and suppliers across our markets.”
“This transaction will create a leading U.S. wholesale distributor of building and industrial products, and significantly enhance the value that we can deliver to our customers, as well as our supplier partners, and end-market consumers,” Lewis explained.
Lewis will serve as CEO of the new company while Cedar Creek CEO Alex Averitt will become COO of the new BlueLinx.
Last year, BlueLinx had sales of $1.82 billion through 39 locations; meanwhile, Cedar Creek generated revenue of $1.42 billion through 31 locations.
Following news of the acquisition, BlueLinx shares shot up more than 80% by mid-day trading.
No comments found