ATLANTA, Aug. 9, 2006 (PRIMEZONE) -- BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today announced that it acquired Austin Hardwoods, a privately held hardwood lumber distributor based in Austin, Texas. The acquisition expands BlueLinx' presence in the Southwest and is expected to enhance the company's ability to service industrial customers in certain local markets. Financial terms of the transaction were not disclosed.
Operating since 1972, Austin Hardwoods distributes high-quality hardwood boards, veneers and plywood to a variety of customer segments including cabinet makers, millwork companies and furniture makers. The company distributes a range of hardwoods that includes ash, alder, cherry, maple, oak and walnut. The company produced total sales in excess of $22 million for 2005. It operates four facilities in Texas, located in Austin, Dallas, El Paso and San Antonio.
"Today's announcement underscores our commitment to grow the BlueLinx specialty products business, in part by acquiring service-oriented companies in high-opportunity areas," said Stephen Macadam, chief executive officer of BlueLinx. "Austin Hardwoods is a well respected distributor operating in an attractive and growing region of the country, and has demonstrated a strong commitment to customer service and solid expertise in hardwood lumber."
With the addition of Austin Hardwoods, BlueLinx now operates 10 facilities in Texas, expanding its capability to service customers and accelerate its specialty products growth in the Southwest. Austin Hardwoods' geographic footprint and hardwood expertise complements BlueLinx' existing inventory and equipment investments as well as its hardwood lumber growth initiatives already underway in this region.
BlueLinx president and chief operating officer George Judd noted: "The acquisition of Austin Hardwoods deepens our line of quality building products while offering Austin Hardwoods the opportunity to expand offerings to current customers. The experienced team at Austin Hardwoods currently distributes to customers who require a customized, solutions-based approach, and we are committed to providing Austin Hardwoods with the resources necessary to grow its platform and gain market share in the region."
Austin Hardwoods will continue to operate under its current name under the direction of the management team and employees currently in place at the company. BlueLinx is not acquiring any of Austin Hardwoods' franchised locations.
About BlueLinx Holdings Inc.
Headquartered in Atlanta, Georgia, BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America. Employing more than 3,600 people in North America, BlueLinx offers 10,000 products from over 750 suppliers to service approximately 12,000 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers and home improvement retailers. The company operates its distribution business from sales centers in Atlanta and Denver, and its network of more than 70 warehouses. BlueLinx is included in the Fortune 500 list of the nation's largest companies and its stock trades on the New York Stock Exchange under the symbol BXC. Additional information about BlueLinx can be found on its Web site at www.BlueLinxCo.com.
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Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All of these forward-looking statements are based on estimates and assumptions made by our management that, although believed by BlueLinx to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of its control, that may cause its business, strategy or actual results to differ materially from the forward-looking statements. These risks and uncertainties may include, among other things: changes in the supply and/or demand for products that we distribute; the activities of competitors; changes in significant operating expenses; changes in the availability of capital; the ability to identify acquisition opportunities and effectively and cost-efficiently integrate acquisitions; general economic and business conditions in the United States; adverse weather patterns or conditions; acts of war or terrorist activities; variations in the performance of the financial markets; and other factors described in the "Risk Factors" section in the company's Annual Report on Form 10-K for the year ended December 31, 2005, and in its periodic reports filed with the Securities and Exchange Commission from time to time. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. BlueLinx undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.