BlueLinx Completes Acquisition of Cedar Creek
April 16 2018 - 7:03AM
BlueLinx (NYSE:BXC), a leading distributor of building and
industrial products in the United States, today 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.
About BlueLinx
BlueLinx Holdings Inc., operating through its
wholly owned subsidiary BlueLinx Corporation, is a leading
distributor of building and industrial products in the United
States. The Company is headquartered in Atlanta, Georgia and
operates its distribution business through its broad network of
distribution centers. BlueLinx is traded on the New York Stock
Exchange under the symbol BXC. Additional information about
BlueLinx can be found on its website. (www.BlueLinxCo.com)
About Cedar Creek
Cedar Creek, established in 1977 as wholesale
building materials company, provides building products for the
heart of America. The Company is headquartered in Oklahoma with
operations in the United States, offering a wide range of products
that vary by region. (www.CedarCreek.com)
Contacts:Investors:Susan
O’Farrell, SVP, CFO &
Treasurer
BlueLinx Holdings
Inc.
(770) 953-7000
Natalie Poulos, Investor RelationsBlueLinx
Holdings
Inc.
(866) 671-5138
investor@bluelinxco.com
Media:Trevor
Gibbons / Amy FengJoele Frank, Wilkinson Brimmer Katcher(212)
355-4449
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements regarding the integration
of BlueLinx and Cedar Creek. All of these forward-looking
statements are based on estimates and assumptions made by
BlueLinx’s management that, although believed by BlueLinx to be
reasonable, are inherently uncertain. Forward-looking statements
involve risks and uncertainties, including, but not limited to,
economic, competitive, governmental, and technological factors
outside of BlueLinx’s control that may cause its business, strategy
or actual results to differ materially from the forward-looking
statements.
In addition, there are significant risks and
uncertainties that relate to the Company’s ownership of Cedar
Creek, including, among other things: the failure to realize the
benefits expected from the combination; the amount, composition and
timing of potential synergies and cost savings that may or are
expected to result from the combination; the acquisition-related
combination costs and BlueLinx’s restructuring and integration
related costs and charges; risks related to disruption of
management time from ongoing business operations due to the
combination and integration of the two companies; the impact of the
combination on BlueLinx’s business; and other factors described in
the “Risk Factors” section in BlueLinx’s Annual Report on Form 10-K
for the year ended December 30, 2017, and in other documents filed
with the Securities and Exchange Commission by BlueLinx from time
to time. Given these risks and uncertainties, you are cautioned not
to place undue reliance on forward-looking statements. BlueLinx
undertakes no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events, and changes in expectations or otherwise, except as
required by law.
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