BlueLinx Holdings Inc (NYSE:BXC) reported that it has finalized a definitive deal to buy Cedar Creek, a major building products wholesale distributor firm, a portfolio entity of Charlesbank Capital Partners for a deal price of $413 million. The purchase price will comprise of around $345 million in cash and around $68 million as the finalized value of the capital leases.
BlueLinx reported that the deal has been unanimously permitted by BlueLinx’s Board and is anticipated to be closed within 45 days, subject to regulatory approvals and customary closing conditions. The combination of Cedar Creek and BlueLinx will create a major building products wholesale distributor firm with one of the leading product offerings in the segment of building products, including over 50,000 private-label and branded SKUs, and a distribution presence of 70 national sites servicing 40 states.
Along with Cedar Creek, BlueLinx can distribute its comprehensive range of specialty and structural products to around 15,000 regional, local and national dealers, as well as national home centers, specialty distributors, manufactured and industrial housing customers. The deal will allow the combined firm to serve diverse end segments from new light commercial construction and residential to industrial, and residential repair and remodel. Cedar Creek and BlueLinx’s combined revenue came at $3.2 billion in 2017.
Mitch Lewis, the CEO and President of BlueLinx, expressed that they are delighted to report the combination of BlueLinx and Cedar Creek. Cedar Creek’s utmost commitment to organic growth as well as its customers and company’s track record of exceptional acquisitions make it an appropriate partner for BlueLinx. The deal will considerably enhance their product portfolio by offering extensive depth and breadth of building services and products for their suppliers and customers across their markets. This deal will create a major U.S. wholesale distributor of industrial and building products.