Wholesale building products distributor BlueLinx Holdings acquired privately-held Vandermeer Forest Products, a wholesale distributor of building products, for a purchase price of $67.0 million. The acquisition includes the $3.6 million purchase of Vandermeer’s distribution facility and real estate in Spokane, Wash., and $63.4 million for the business.
According to BlueLinx, based on preliminary estimates for September 2022 results, the deal reflects a purchase price multiple for the business of approximately 3.3x trailing twelve-month adjusted EBITDA. Vanderemeer’s trailing twelve-month sales were just over $150 million.
“We are excited to welcome Vandermeer’s employees to the BlueLinx team. This acquisition is well-aligned to our specialty product growth strategy, gives us a meaningful growth platform in the Pacific Northwest, a stated strategic priority, and is consistent with our disciplined approach to capital allocation,” BlueLinx president and CEO Dwight Gibson said in a news release. “With the addition of Vandermeer, we now have a footprint that spans coast-to-coast and serves all 50 states, including direct access to Seattle and Portland, two of the fastest growing metro areas in the United States.”
Vandermeer serves more than 250 customers across the Pacific Northwest, Alaska, Hawaii, British Columbia, and Alberta from distribution facilities in Kent, Spokane, and Marysville, Wash. Gibson said the acquisition strengthens BlueLinx’s relationships with key strategic suppliers and “increases our market penetration in high-value, specialty product categories, specifically siding and engineered wood.”
“We are thrilled to join BlueLinx, a company whose performance-based culture closely aligns to what we have built at Vandermeer over the last 50 years,” Dave Staudacher, president and CEO of Vandermeer Forest Products, said. “We believe its scale, private label products, broader specialty product offering, and operating efficiencies make BlueLinx the ideal buyer of Vandermeer and we are excited to become part of this next chapter of growth at BlueLinx.”
Marietta, Ga.-based BlueLinx has a distribution footprint serving 50 states and distributes its range of structural and specialty products to approximately 15,000 customers across the United States.
