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Builders FirstSource in all-stock deal with BMC for $2.5 B.

  • Aug 27, 2020
  • 1 min read

Updated: Sep 9, 2020



Texas based largest nationwide supplier of building products, and readymade components for residential homes, Builders FirstSource Inc has agreed to buy BMC Stock Holdings Inc in an all-stock deal worth $2.5 billion. BMC is also a leading provider of building materials headquartered in North Carolina.

The deal is a result of strong recovery in the US housing market from the coronavirus economic crisis, which went up by 23% in June (highest in four year) and 17.3% in June. Both companies combined will become a premier supplier in building materials and services, and estimated sales of $11 billion. In addition to this, the combined company will have abundant resources to expand it's geographic footprint, increase sales, and innovation.

BMC shareholders will receive a premium of almost 14% as for every stock of BMC they will receive 1.3125 shares of Builders FirstSource stock. Builders FirstSource shareholders will hold 57% whereas BMC shareholders will hold 43% of the new company. The combined new company will retain the name Builders FristSource.


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