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.
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