Freedonia Analyst Weighs In on BlueLinx's Acquisition of Cedar Creek

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Mar 14, 2018, 09:30 ET

CLEVELAND, March 14, 2018 /PRNewswire/ -- BlueLinx Holdings Incorporated, a leading US distributor of building materials and related construction products, announced today that it has entered into an agreement to purchase Cedar Creek – a wholesale building products distributor – from Charlesbank Capital Partners for approximately $415 million.

The transaction, which is expected to be completed in the second quarter of 2018, will:

Nearly double the number of BlueLinx's existing sales locations to nearly 70 sites across the US
Allow BlueLinx to add Cedar Creek's products to its portfolio, providing it with enhanced sales opportunities for such items as lumber, siding, insulation, decking, and moulding and trim
Enable BlueLinx to better serve Cedar Creek's customer base by integrating its catalog into BlueLinx's extensive ecommerce platform

According to Freedonia Group industry analyst Matt Zielenski, "This transaction greatly expands BlueLinx's physical presence in the building materials distribution market and makes BlueLinx a more formidable competitor nationwide." Furthermore, noted Zielenski, with construction activity in the US showing steady growth, BlueLinx will be well-positioned to capitalize on increased demand for building materials.

"Housing starts are expected to rise during the remainder of 2018, especially now that the weather will be more favorable in the US. Additionally, as rebuilding activity continues in Florida and Texas in the aftermath of Hurricanes Harvey and Irma and more consumers show an interest in home improvement projects, contractors will be purchasing more plywood, framing lumber, insulation, siding, and other building materials. The combined operations of BlueLinx and Cedar Creek can supply builders and contractors with most, if not all, of these products."

For more information on the outlook for the US building construction industry, see the Construction Studies page featuring the following studies by The Freedonia Group:

Moulding & Trim in the US

Home Kitchen & Bathroom Remodeling

Siding in the US by Material, Market, & Region, 17th Edition

Insulation in the US by Material, Market, & Region, 12th Edition

Roofing: US Forecasts by Product, Market, & Subregion

Siding Distribution in the US by Channel, Market, & Type

About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.

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SOURCE The Freedonia Group