Building products distributor BlueLinx Holdings Inc. said Oct. 3 that it has acquired privately-held Vandermeer Forest Products, a similar wholesale distributor, for $67 million.
The purchase price includes $3.6 million for a distribution facility and real estate in Spokane, Washington, and $63.4 million for the business itself, BlueLinx said in a news release.
Based on preliminary estimates for September 2022 results, it reflects a purchase price multiple for the business of approximately 3.3x trailing twelve-month adjusted EBITDA, BlueLinx said. Vandermeer’s trailing twelve-month sales were just over $150 million.
The purchase was funded through cash on hand and is expected to be immediately accretive to diluted earnings per share on a pre-synergy basis, BlueLinx said.
“We are excited to welcome Vandermeer’s employees to the BlueLinx team,” said Dwight Gibson, president and CEO of BlueLinx. “This acquisition is well-aligned to our specialty product growth strategy, gives us a meaningful growth platform in the Pacific Northwest, a stated strategic priority, and is consistent with our disciplined approach to capital allocation. With the addition of Vandermeer, we now have a footprint that spans coast-to-coast and serves all 50 states, including direct access to Seattle and Portland, two of the fastest growing metro areas in the United States. Additionally, this acquisition further strengthens our relationships with key strategic suppliers and increases our market penetration in high-value, specialty product categories, specifically siding and engineered wood. Notably, there is no operational overlap, and our team has developed a robust integration plan to drive commercial and operational synergies.”