The 2020 Mid-Year Economic Update_long

BlueLinx Holdings Acquires Austin Hardwoods

BlueLinx Holdings Inc., Atlanta, GA, a distributor of building products in North America, has acquired Austin Hardwoods, a privately held hardwood lumber distributor in Austin, TX. The acquisition expands BlueLinx’s presence in the Southwest and is expected to enhance the company’s ability to service industrial customers in certain local markets.

Operating since 1972, Austin Hardwoods distributes hardwood boards, veneers and plywood to a variety of customer segments including cabinet makers, millwork companies and furniture makers. The company distributes a range of hardwoods that includes ash, alder, cherry, maple, oak and walnut. The company produced total sales in excess of $22 million for 2005. It operates four facilities in Texas, in Austin, Dallas, El Paso and San Antonio.

“Today’s announcement underscores our commitment to grow the BlueLinx specialty products business, in part by acquiring service-oriented companies in high-opportunity areas,” said Stephen Macadam, chief executive officer of BlueLinx.

With the addition of Austin Hardwoods, BlueLinx now operates 10 facilities in Texas, expanding its capability to service customers and accelerate its specialty products growth in the Southwest. Austin Hardwoods’ geographic footprint and hardwood expertise complements BlueLinx’ existing inventory and equipment investments as well as its hardwood lumber growth initiatives already underway in this region.

>Second Quarter Earnings
Bluelinx also announced second-quarter results for the period ended July 1, 2006. Sales were down 7.3% to $1.38 billion, compared with the same period a year ago. The decline reflects a 16.9% decrease in structural product sales, partially offset by an 11.2% increase in specialty product sales.

Lane Stanton Vance, the specialty hardwoods distributor acquired by BlueLinx in July 2005, contributed 2.6 percentage points of the total specialty unit volume growth. Approximately two-thirds of the decline in structural product sales resulted from decreased unit volume as the company focused on preserving its structural product margins against steadily deteriorating wood-based structural product prices during the quarter.

Net income went up 62% however to $12.6 million.

Headquartered in Atlanta, Georgia, BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, offers 10,000 products from over 750 suppliers to service 12,000 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers and home improvement retailers. The company operates its distribution business from sales centers in Atlanta and Denver, and its network of more than 70 warehouses.

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