BlueLinx’s Acquisition of Cedar Creek


Fried Frank acted as counsel to BlueLinx (NYSE: BXC), in connection with the financing related to its acquisition of Cedar Creek, a leading building products wholesale distributor specializing in a wide variety of building products, from Charlesbank Capital Partners for US$413 million on a debt-free, cash-free basis.

BlueLinx (NYSE:BXC), a leading distributor of building and industrial products in the United States, today announced that it has completed its previously announced acquisition of Cedar Creek, a leading building products wholesale distributor specializing in a wide variety of building products.

The combination of BlueLinx and Cedar Creek creates one of the largest wholesale distribution companies in the building products industry, with combined revenue of approximately $3.2 billion in 2017. With one of the largest product offerings in the industry and over 70 locations, the combined company will utilize its broad footprint to better serve its extensive network of customers.

BlueLinx used net proceeds from debt issuance under its amended $750 million ABL revolving credit facility (inclusive of a $150 million accordion) and a new $180 million term loan to fund the purchase price, repay debt and to pay certain related transaction fees and expenses. Excess availability under the ABL and cash on hand as of the closing approximated $157 million.

BlueLinx Holdings Inc. distributes building products in the United States. The Company’s structural products include plywood, oriented strand board, lumber, and other wood products used for structural support. BlueLinx, led by Mitchell B Lewis, Susan C O’Farrell and Alex Averitt, in 2017 recoreded $1.815 revenues.

The Fried Frank team was led by corporate partner Caroline Sandberg (Picture) and included corporate partner Michael T. Gershberg; executive compensation & ERISA partner Donald P. Carleen; tax partner Joseph E. Fox; corporate special counsel Andrew J. Klein; corporate real estate special counsel Jessica H. Mayes; intellectual property and technology special counsel Jason L. Greenberg; corporate associates Samuel A. Borland, Dallas Cruz, Justin A. Schenck, Abbie R. Schepps, and Brian Sullivan; tax associate Thomas A. Mitchell; corporate law clerk Melissa S. Doura; and executive compensation & ERISA law clerk Maggie A. Kornreich.

Involved fees earner: Caroline Sandberg – Fried Frank Harris Shriver & Jacobson; Michael Gershberg – Fried Frank Harris Shriver & Jacobson; Andrew Klein – Fried Frank Harris Shriver & Jacobson; Samuel Borland – Fried Frank Harris Shriver & Jacobson; Dallas Cruz – Fried Frank Harris Shriver & Jacobson; Justin Schenck – Fried Frank Harris Shriver & Jacobson; Abbie Schepps – Fried Frank Harris Shriver & Jacobson; Brian Sullivan – Fried Frank Harris Shriver & Jacobson; Donald Carleen – Fried Frank Harris Shriver & Jacobson; Joseph Fox – Fried Frank Harris Shriver & Jacobson; Thomas Mitchell – Fried Frank Harris Shriver & Jacobson; Jessica Mayes – Fried Frank Harris Shriver & Jacobson; Jason Greenberg – Fried Frank Harris Shriver & Jacobson;

Law Firms: Fried Frank Harris Shriver & Jacobson;

Clients: BlueLinx Holdings Inc.;

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Author: Ambrogio Visconti