It’s official: BLDR-ProBuild deal is done

As expected, the Builders FirstSource acquisition of ProBuild Holdings, a deal that creates the industry’s largest LBM supplier, is in the books.

The combination of Builders FirstSource and ProBuild will create a national professional dealer with 2014 combined revenues of approximately $6.1 billion. The combined company will leverage its nationwide network to better serve its four critical customer segments, including production builders, custom builders, multi-family/commercial, and repair and remodel. With over 430 locations, the new company will serve 74 of the top 100 metropolitan statistical areas across 40 states.

"The culmination of this acquisition marks a significant milestone in our industry, creating a unique company with enhanced scale and a national footprint. By bringing together the extensive products and services offerings of both Builders FirstSource and ProBuild, we will further strengthen our long-standing customer relationships," said Floyd Sherman, CEO of Builders FirstSource. "This is an exciting day for our employees as we officially join forces to establish a broader, more efficient platform of manufacturing and distribution capabilities."

Now begins the ambitious effort to integrate the two organizations,

Next up for the combined companies: Take advantage of the housing market recovery, executives said.

In conjunction with the closing of its acquisition of ProBuild, the company completed its previously announced public offering of 12,000,000 shares of its common stock at a price per share of $12.80. Also, Builders FirstSource successfully completed its previously announced private offering of $700 million aggregate principal amount of its 10.75% senior notes due 2023.

"The combination of Builders FirstSource and ProBuild creates an industry leader that is well-positioned to take advantage of the continuing housing recovery,” said Paul S. Levy, chairman of the board. “I could not be more proud to be associated with such an outstanding management team and to have been a part of this transformative transaction."