Builders FirstSource to Finalize ProBuild Acquisition

July 14th, 2015 by Editor

Builders FirstSource Inc. announced this week that it expects to complete its acquisition of ProBuild Holdings LLC in August. The deal, which was first announced in April, is an all-cash transaction valued at $1.63 billion.

Highlights of the deal, according to a release from Builders FirstSource in April:

  • It will create a diversified national dealer with 2014 combined revenues of approximately $6.1 billion;
  • An improved geographic footprint—including a presence in 40 states and every one of the top 25 U.S. metropolitan areas except Boston;
  • Expanded sales of higher margin products; and
  • Cost savings of $100 million to $120 million in synergies in the first two years following close (following one-time costs of $90 to $100 million).

Upon closing of the transaction, Floyd Sherman of Builders FirstSource will serve as CEO of the combined company and Chad Crow will serve as chief financial officer. Robert Marchbank, CEO of ProBuild, will continue as part of the ProBuild leadership team to support integration planning during the transitioning phase. According to a company statement, additional announcements will be made regarding the combined company’s senior leadership team in the coming months.

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