Builders FirstSource To Acquire ProBuild In $1.63 Bln Deal - Quick Facts

(RTTNews) - Builders FirstSource Inc. (BLDR) announced that it agreed to acquire ProBuild Holdings LLC , professional building materials supplier, in an all-cash transaction valued at approximately $1.63 billion.

The transaction, which was approved by the Builders FirstSource Board of Directors, is subject to customary closing conditions and regulatory approvals and is expected to close in the second half of 2015.

The combination of Builders FirstSource and ProBuild is expected to generate a range of approximately $100 million to $120 million in annual run-rate cost-savings synergies in the first two years following close. Actions to begin capturing a majority of these savings are expected to be implemented within the first 12 months following close through network optimization, procurement, and general and administrative costs. One-time costs of $90 million to $100 million are expected to be incurred to achieve these synergies during the first two years.

The transaction is also expected to be immediately accretive to Builders FirstSource's earnings.

Upon closing of the transaction, Floyd Sherman, Chief Executive Officer of Builders FirstSource, will serve as Chief Executive Officer of the combined company, and Chad Crow will serve as Chief Financial Officer.

Robert Marchbank, Chief Executive Officer of ProBuild, will continue as part of the ProBuild leadership team to support integration planning and ensure a smooth transition. Over the coming months, additional announcements will be made regarding the combined company's senior leadership team, which will be composed of leaders from both companies.

The transaction is expected to close in the second half of 2015 and is subject to, among other things, the expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, as well as other customary closing conditions.