BlueLinx Holdings (BXC), a distributor of building and industrial products, has agreed to acquire Cedar Creek, a building products wholesale distributor, from Charlesbank Capital Partners for $413 million on a debt-free, cash-free basis. BXC shares were over 2% higher in recent pre-market trade.
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 has been unanimously approved by BlueLinx’s board of directors, and is expected to be completed within 45 days.
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, BlueLinx said in a statement Monday.