BXC - 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 / Active-Investors.com 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 www.active-investors.com/registration-sg/?symbol=BXC 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:
www.active-investors.com/registration-sg
Active-Investors.com 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:
www.active-investors.com/registration-sg/?symbol=HBP
Active-Investors.com 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:
www.active-investors.com/registration-sg/?symbol=BXC
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.
Active-Investors:
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active-Investors