DALLAS — Builders FirstSource, Inc. and BMC Stock Holdings, Inc., have announced the completion of their all-stock merger transaction.
The close of the merger creates a premier supplier of building materials and services, with combined sales of approximately $11.7 billion as of the twelve months ended Sept. 30, 2020, the company stated in a press release.
The combined company will operate a network of approximately 550 distribution and manufacturing locations, with a presence in 40 states, including 44 of the top 50 metropolitan statistical areas, covering most of the nation’s fastest growing regions.
Under the terms of the previously announced merger agreement, BMC shareholders received 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 its 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.
“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. 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. I look forward to working closely with our team to ensure a seamless transition as we enter the next chapter of our remarkable growth story,” said Chad Crow, CEO of Builders FirstSource.
“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,” added Dave Flitman, the former CEO of BMC, who will succeed Crow as the CEO of Builders FirstSource, Inc. “During the past several months, we have made significant strides in laying the foundation for a 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. I am humbled by, and grateful for, the opportunity to lead our new Company into this next phase and strongly believe we have the right talent, experience, and strategies in place to create the most exciting growth platform in our industry.”
As previously announced, beginning April 1, Flitman will become CEO of Builders FirstSource, and Crow will retire and remain available on a consulting basis to support the integration and to ensure an orderly transition.