BFS and BMC Complete 550-Facility Merger
Originally published by: HBS Dealer — January 4, 2021
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Builders FirstSource and BMC Stock Holdings have completed their all-stock super LBM merger.
The combination of the two pro dealer heavyweights creates a building materials and services provider with annual sales of approximately $11.7 billion with 550 distribution and manufacturing facilities in over 40 states. This includes 44 of the top 50 metro markets in the country.
Terms of the deal called for BMC shareholders to receive a fixed exchange ratio of 1.3125 shares of Builders FirstSource common stock for each share of BMC common stock held immediately prior to the effective time of the merger.
The pre-closing Builders FirstSource shares remain outstanding and currently represent approximately 57% of the combined company’s shares outstanding. The combined company will operate under the name Builders FirstSource, Inc., and shares will continue to trade on the NASDAQ under the symbol “BLDR”.
As a result of the completion of the merger, the common stock of BMC has been delisted for trading on the NASDAQ.
This move places Builders FirstSource as the second-largest building materials distributor behind only ABC Supply, the Beloit, Wis.-based roofing and building products distributor with approximately 800 locations coast-to-coast.
“We are extremely excited to move forward as one company that is even better positioned to offer enhanced value for shareholders, customers, and team members,” said Chad Crow, CEO of Builders FirstSource. “Uniting our complementary assets and leveraging our combined geographic presence provides us with an expanded base to deliver our best-in-class solutions as the residential recovery continues.”
“Looking ahead, I am confident that Dave Flitman will do an outstanding job leading our combined company to build upon our proven track record of innovation, financial discipline, and superior execution,” Crow added.
Flitman, previously the CEO of BMC, will become the next CEO of the combined company beginning April 1 with Crow returning on that date. Last month, the new company outlined its complete executive team moving forward.
“The completion of this merger represents a transformational milestone for our customers and an exceptional platform to accelerate the growth of our value-added solutions,” Flitman said. “During the past several months, we have made significant strides in laying the foundation for successful integration. Our combined leadership team will blend the best of both of these great companies and do an excellent job of leading our approximately 26,000 team members.”
Builders FirstSouce will continue to maintain its Dallas, Texas headquarters along with corporate offices in Raleigh, N.C.