Industry News

BlueLinx Merging with Cedar Creek

BlueLinx, Atlanta, Ga., has entered into a definitive agreement to acquire Cedar Creek, Oklahoma City, Ok., from Charlesbank Capital Partners, Boston, Ma., for $413 million.

BlueLinx, Atlanta, Ga., has entered into a definitive agreement to acquire Cedar Creek, Oklahoma City, Ok., from Charlesbank Capital Partners, Boston, Ma., for $413 million.

The deal, consisting of approximately $345 million in cash and $68 million in capital leases, has been unanimously approved by BlueLinx’s board and is expected to close before the end of April.

Together, the wholesalers supply 15,000 retail, specialty distribution and industrial customers in 40 states with over 50,000 branded and private-label SKUs from 70 locations, with combined revenue of $3.2 billion in 2017.

“The combination will significantly enhance our product portfolio by providing greater breadth and depth of building products and services for our customers and suppliers across our markets,” said Mitch Lewis, president and CEO of BlueLinx. “This transaction will create a leading U.S. wholesale distributor of building and industrial products, and significantly enhance the value that we can deliver to our customers, as well as our supplier partners, and end-market consumers.”

Lewis will continue as CEO of the combined company, which will remain headquartered in Atlanta. Alex Averitt, CEO of Cedar Creek, will become COO of BlueLinx and D. Wayne Trousdale, chairman of Cedar Creek, will become vice chairman of the operating companies. Initially, the parent company will remain named BlueLinx and Cedar Creek will retain its name in its locations.

Established in 1977, Cedar Creek operates 31 locations—23 of which have been opened or acquired since the firm was purchased by Charlesbank Capital in 2010.

526 Media Group

Publisher of two monthly magazines for LBM dealers and distributors—The Merchant Magazine, founded in 1922 to serve the western U.S., and Building Products Digest, formed in 1982 to serve east of the Rockies.

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