Builders FirstSource, Dallas, Tx., and BMC Stock Holdings, Raleigh, N.C., are joining forces in an all-stock merger transaction, creating an $11-billion-a-year supplier of building materials and services from 550 distribution and manufacturing operations in 42 states.
Under the terms of the deal, which has been unanimously approved by the boards of directors of both companies, BMC shareholders will receive 1.3125 shares of Builders FirstSource common stock for each share of BMC common stock. Upon completion of the merger, existing BFS shareholders will own about 57% and existing BMC shareholders will own approximately 43% of the combined company.
After a 90-day transition period following the completion of the merger, BFS CEO Chad Crow will retire as previously announced and will be succeeded as CEO of the combined company by Dave Flitman, current CEO of BMC.
BMC’s millwork capability, Ready-Frame offerings, and other manufactured products will complement BSF’s strengths in trusses and manufactured components.
The combined company will operate under the name Builders FirstSource, Inc. and will be headquartered in Dallas, while maintaining key corporate centers in both Raleigh and Denver, Co.
BSF chairman Paul S. Levy and chief financial officer Peter Jackson will continue their roles. The transition and integration will be led by Dave Rush, chief operating officer of BSF’s East Region, who led the integration team for Builders FirstSource in its ProBuild acquisition, and Jim Major, CFO of BMC.
The deal is expected to close in late 2020 or early 2021.