BlueLinx Completes Acquisition of Cedar Creek
Tuesday, April 17th, 2018
BlueLinx, a leading distributor of building and industrial products in the United States, announced that it has completed its previously announced acquisition of Cedar Creek, a leading building products wholesale distributor specializing in a wide variety of building products.
The combination of BlueLinx and Cedar Creek creates one of the largest wholesale distribution companies in the building products industry, with combined revenue of approximately $3.2 billion in 2017. With one of the largest product offerings in the industry and over 70 locations, the combined company will utilize its broad footprint to better serve its extensive network of customers.
“We are pleased to announce today that we have finalized the strategic acquisition of Cedar Creek which marks a new, transformative era for our company,” said Mitch Lewis, President and Chief Executive Officer of BlueLinx. “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.”
Alex Averitt, recently appointed Chief Operating Officer 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 used net proceeds from debt issuance under its amended $750 million ABL revolving credit facility (inclusive of a $150 million accordion) and a new $180 million term loan to fund the purchase price, repay debt and to pay certain related transaction fees and expenses. Excess availability under the ABL and cash on hand as of the closing approximated $157 million.