It’s official: BMC and Stock tie the knot
Meet BMC Stock Holdings Inc. – the latest superpower to hit the LBM industry.
The company announced today the successful merger of Stock Building Supply Holdings, Inc. and Building Materials Holding Corporation. The new company, based in Atlanta, Georgia, will continue to operate under the BMC and Stock Building Supply brands in markets across the nation. The combined company’s common stock will trade on the NASDAQ Exchange under the ticker symbol “STCK.”
The two companies announced plans for a merger on June 3, describing the creation of a national building materials distribution platform with about $2.6 billion in combined sales.
BMC brings strong presence in attractive markets in the West, Texas and the Southeast, while Stock -- which has roots as Carolina Holdings -- brings significant presence in the mid-Atlantic states. With the merger, presence increases from 21 to 42 metropolitan areas. And the locations in 17 states represent 63% of 2014 single-family building permits.
“Today is a momentous day,” said Peter Alexander, president and CEO of BMC Stock, described. “We look forward to leveraging our broader range of best-in-class, value-added products and strong technology platform to build on our leading market position in attractive, fast-growing regions across the United States.”
In the release announcing the merger, Alexander also pointed to a strong balance sheet that will support continued investment in the business and in new markets.
As of today’s merger closing, and as previously announced, Alexander will serve as president and CEO and a member of the BMC Stock board of directors, and Jim Major will serve as executive VP, CFO and treasurer. The company’s board of directors, comprising five former BMC directors and three continuing Stock Building Supply directors, will be led by David Bullock as chairman.
With the close of the transaction, Wells Fargo Bank, N.A. and Goldman Sachs Bank USA have consolidated and upsized the combined company’s revolving Asset Based Loan facilities to $450 million. Available funds will be used to refinance outstanding balances under the former BMC and Stock Building Supply revolving credit facilities, support up to $75 million in letters of credit, and fund transaction costs, general corporate purposes and working capital. Additionally, $250 million of former BMC Senior Secured Notes maturing in 2018 will remain outstanding.