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Blog Exposure - Bluelinx to Buy Charlesbank’s Portfolio Company Cedar Creek

Stock Monitor: Huttig Building Products Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 14, 2018 / has just released a free research report on Bluelinx Holdings Inc. (NYSE: BXC) ("Bluelinx"). If you want access to this report all you need to do is sign up now by clicking the following link as the Company's latest news hit the wire. On March 12, 2018, the Company announced that it has inked an agreement to acquire Cedar Creek, a leading building products wholesale distributor, for approximately $413 million on a debt-free, cash-free basis. Register today and get access to over 1000 Free Research Reports by joining our site below: is currently working on the research report for Huttig Building Products, Inc. (NASDAQ: HBP), which also belongs to the Services sector as the Company Bluelinx Holdings. Do not miss out and become a member today for free to access this upcoming report at: is focused on giving you timely information and the inside line on companies that matter to you. This morning, Bluelinx Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

Deal Insights

  • The purchase price will consist of approximately $345 million in cash and approximately $68 million as the agreed value of the capital leases. The transaction, which is expected to close within 45 days, is subject to customary closing conditions and regulatory approvals and has been unanimously approved by Bluelinx's Board of Directors.
  • The parent Company will remain Bluelinx, and Cedar Creek will retain its name in its locations. The combined Company will remain headquartered in Atlanta, Georgia.
  • Mitch Lewis, President and Chief Executive Officer (CEO) of Bluelinx, will continue as CEO of the combined Company. Alex Averitt, CEO of Cedar Creek, will become Chief Operating Officer (COO) of Bluelinx and D. Wayne Trousdale, Chairman of Cedar Creek, will become Vice Chairman of the Operating Companies.
  • Bluelinx has commitments from Wells Fargo Bank, N.A., and Bank of America, N.A. to arrange a $750 million revolving credit facility that includes a $150 million accordion feature, and has a commitment from HPS Partners for a $180 million term loan, including the finalization of definitive loan agreements. Proceeds from the ABL Revolver and Term Loan will be used to fund the purchase price and repay debt.
  • Moelis & Co. is serving as financial advisor, and King & Spalding and Fried Frank are serving as primary legal counsel for Bluelinx.

As per the news report, following the announcement, Bluelinx's shares surged in mid-day trading.

Benefits of the Deal

The combined Company 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. The new Company 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. The combination will drive significant cost savings through network and fleet optimization, procurement opportunities, and general and administrative (G&A) expense savings.

The integration process is expected to generate annual run-rate cost savings of at least $50 million annually, which Bluelinx believes will be realized on an annual run-rate basis within 18 months, following the close of the transaction. Bluelinx and Cedar Creek's combined revenues were $3.2 billion in 2017, and Bluelinx's pro-forma LTM adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for 2017 would have been approximately $154 million, including at least $50 million of annual cost savings. The transaction is expected to be immediately accretive to Bluelinx's earnings per share (EPS), and provide financial strength to support the Company's continued commitment to deleveraging.

Merger Will Create a Leading US Wholesale Distributor of Building and Industrial Products

Mitch Lewis stated that the combination will enhance Bluelinx's product portfolio by providing greater breadth and depth of building products and services for its customers and suppliers across Bluelinx's markets. This transaction will create a leading US wholesale distributor of building and industrial products, and significantly enhance the value that the Company can deliver to its customers, as well as supplier partners and end-market consumers. Lewis further added that with an extensive cache of products, the benefits of the combined technology and a strong footprint East of the Rockies, the Company will be well-positioned to drive profitable growth for its stakeholders.

About Bluelinx Holdings Inc.

Founded in 2004 and headquartered in Atlanta, Georgia, Bluelinx is a leading distributor of building products in North America. The Company offers thousands of products from suppliers all over the world to service over 10,000 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers, and home improvement retailers.

About Cedar Creek

Established in 1977 as a wholesale building materials distribution Company, Cedar Creek provides wood products for the heart of America. The Company is headquartered in Oklahoma, with operations in the United States, and offers a wide range of products that vary by region. Cedar Creek is a portfolio Company of Charlesbank Capital Partners.

Stock Performance Snapshot

March 13, 2018 - At Tuesday's closing bell, Bluelinx Holdings' stock surged 21.51%, ending the trading session at $34.06.

Volume traded for the day: 4.25 million shares, which was above the 3-month average volume of 254.18 thousand shares.

Stock performance in the last month – up 120.45%; previous three-month period – up 243.00%; past twelve-month period – up 326.82%; and year-to-date - up 248.98%

After yesterday's close, Bluelinx Holdings' market cap was at $308.92 million.

Price to Earnings (P/E) ratio was at 3.47.

The stock is part of the Services sector, categorized under the Building Materials Wholesale industry.


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