BlueLinx completes sale-leaseback deal
BlueLinx said it will pursue additional sale-leaseback deals in coming months.
BlueLinx Holdings Inc. reported that it has completed a sale-leaseback transaction for its distribution facility in University Park, Ill. for a purchase price of $23 million.
Proceeds from the transaction are being used to repay debt under the company’s term loan. Upon completion of the transaction, BlueLinx entered a long-term lease with multiple renewal options on the property.
“This transaction represents another key step in our ongoing efforts to monetize our real estate assets and reduce our leverage, while remaining committed to our local market under a long-term lease arrangement,” said Mitch Lewis, BlueLinx president and CEO.
Lewis noted that BlueLinx will pursue additional sale leaseback and real estate sales opportunities in the coming months. “We seek to unlock the value of our real estate assets.”
The terms of this deal were not disclosed in a statement issued by BlueLinx regarding the deal. But the company noted that it plans reveal additional details about the transaction in an upcoming Securities and Exchange commission filing.
Based in Marietta, Ga., BlueLinx distributes products to approximately 15,000 national, regional, and local dealers, as well as specialty distributors, national home centers, industrial, and manufactured housing customers in 40 states. The company carries roughly 50,000 branded and private-label SKUs.
Earlier this month, BlueLinx reported first quarter 2019 net sales increased 46% to $639 million from sales of $437 million in the first quarter 2018.
The company also posted a net loss of $7 million for the quarter, compared to a net loss of $11 million for the same period last year.
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