The new combined footprint of Builders FirstSource and BMC Stock Holdings (Image courtesy of Builders FirstSource and BMC).
Questions about leadership have also been answered. Crow announced earlier this year that he was stepping down as CEO of Builders FirstSource. But the companies had to look no further than BMC CEO Dave Flitman for the top executive of the new entity.
"Earlier this year I announced my intention to retire once we identified my successor," Crow said. "I believe we have found the best fit possible in BMC’s Dave Flitman."
Looking ahead, and taking into account the increased scale of the company, larger market penetration, and geographic diversity, Flitman says the dealer is poised to expand even further. “Overall, we’ll have a leading operation poised for future growth as the fragmented market continues to consolidate.”
“We will significantly improve our ability to service key high-growth markets in the South, Southeast and West regions, which represent over three-quarters of U.S. single-family housing starts and more than 85% of our combined revenues," Flitman explained.
Crow will remain with the company for roughly 90 days after the closing of the transition with Builders FirstSource CFO Peter Jackson remaining as the lead financial executive of the merged company.
Builders FirstSource Chairman Paul Levy will serve as chairman of the board of directors of the combined company. The combined board will include12 total directors, with 7 directors from the current Builders FirstSource board and 5 directors from the current BMC board.
Terms of the all-stock merger, announced on Aug. 27, call for BMC shareholders to receive 1.3125 Builders FirstSource shares for each BMC share. Ownership at transaction close will break down at a ratio of 57% Builders FirstSource shareholders and 43% BMC shareholders.
The company will be branded as Builders FirstSource once the merger closes in the fourth quarter and trade on the BLDR ticker symbol.