OKLAHOMA CITY - Building product distributor BlueLinx has acquired lumber giant Cedar Creek for $413 million - creating a $3.2 billion, 70-store wholesale distribution giant.
The acquisition will be made with a combination of $345 million in cash and $68 million in capital leases. BlueLinx President and CEO Mitch Lewis will run the combined company, and Cedar Creek CEO Alex Averitt is set to become COO. Initially, Cedar Creek will retain its current name at its locations.
The combination of BlueLinx and Cedar Creek will create a leading building products wholesale distributor with one of the largest product offerings in the building products industry, including over 50,000 branded and private-label SKUs, and a distribution footprint of 70 national locations servicing 40 states. With Cedar Creek, BlueLinx says it will be able to distribute its comprehensive range of structural and specialty products to approximately 15,000 national, regional, and local dealers, as well as specialty distributors, national home centers, industrial, and manufactured housing customers.
The transaction will enable the combined entity to serve diverse end markets from new residential and light commercial construction to industrial, as well as residential repair and remodel. BlueLinx and Cedar Creek’s combined revenue was $3.2 billion in 2017 and its pro forma LTM Adjusted EBITDA for 2017 would have been approximately $154 million including at least $50 million of annual cost savings.
BlueLink is a publically-traded building product distributor employing 1,600. The company recorded $1.8 billion in sales in 2017, while privately-held Cedar Creek a distributor of wholesale lumber and wood products, recorded $1.42 billion.