ATLANTA (News release) -- BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale distributor of building products, announced the acquisition of Disdero Lumber Co., LLC ("Disdero"), a specialty products distributor, from privately held Tumac Lumber Company, Inc. Operating since 1953 and based in Clackamas, Oregon, Disdero is a value-added distributor of premium specialty wood products. The aggregate purchase price was approximately $96 million, and when adjusted for an estimated $8 million of expected tax benefits, the net transaction value is approximately $88 million. The acquisition was funded with cash on hand and is not expected to materially change the Company's strong liquidity position and low net leverage ratio. It is expected to be immediately accretive to earnings.
Disdero's offering is comprised entirely of specialty products, featuring a complete line of clear lumber and distinctive wood architectural elements that are sold into nearly all 50 states. Disdero's products are used primarily in the construction of high-end, custom homes and decks, as well as upscale multi-family residential and commercial projects. This acquisition follows BlueLinx's opening of a new greenfield distribution center in Portland, Oregon, and the previous acquisition of Vandermeer Forest Products in Washington state.
"This acquisition continues our Western expansion and is expected to serve as a catalyst for growth by using our existing distribution network to offer Disdero's premium specialty products to many of our customers not currently served by Disdero," said Shyam Reddy, President and Chief Executive Officer at BlueLinx. "We also plan to leverage our national footprint to serve and expand their existing business as a key component of BlueLinx's strategic growth initiatives. The acquisition enhances our specialty products focus, as well as our geographic expansion and channel diversification strategies. We look forward to welcoming Disdero's employees to the BlueLinx team, and to continuing their longstanding relationships with suppliers and customers."
"We are very excited to join BlueLinx and expect to take the successful Disdero business to the next level," said Ryan Kline, President and Chief Executive Officer of Disdero. "By combining our premium products with the nationwide scale and footprint, deep customer and supplier relationships, and financial strength of BlueLinx, we believe there are significant opportunities to expand our product offering in both new and existing markets."
