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Builders FirstSource, BMC to Combine in $1.2B Merger
Dallas-based Builders FirstSource and Raleigh, NC-based BMC Stock Holdings said Thursday that they had entered into an all-stock merger agreement valued at approximately $1.2 billion.
Post-merger, existing Builders FirstSource shareholders will own approximately 57% of the combined company, which will have a combined $11 billion in annual sales of building materials and services.
“This is a transformational opportunity that unites two outstanding and complementary companies, providing enhanced scale and superior returns as we build upon a new, larger platform,” said Builders FirstSource CEO Chad Crow. “Builders FirstSource and BMC together will have a very diverse portfolio of value-added offerings and greater resources to more closely partner with and serve customers.”
The merger is expected to close in late 2020 or early 2021. After a 90-day transition period, Crow will retire as previously announced, and will be succeeded as CEO of the combined company by Dave Flitman, currently BMC’s CEO.
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