Builders FirstSource, Inc. and BMC Stock Holdings, Inc., today announced that they have entered into a definitive merger agreement under which Builders FirstSource and BMC will combine in an all-stock merger transaction to create the nation’s premier supplier of building materials and services with over $11 billion in annual sales. Chad Crow, current Chief Executive Officer of Builders FirstSource, will retire after a 90-day transition period and will be succeeded as Chief Executive Officer of the combined company by Dave Flitman, current Chief Executive Officer of BMC. Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, upon completion of the merger, existing Builders FirstSource shareholders will own approximately 57% and existing BMC shareholders will own approximately 43% of the combined company on a fully diluted basis. The merger is expected to be tax free for U.S. federal income tax purposes.
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