Builders FirstSource, Inc. (NASDAQ: BLDR)
Builders FirstSource stock saw nice gains in early trading today after the company made an acquisition announcement. While the fast paced momentum has slowed a bit in the growth, we’re still seeing upward trends and the stock is up more than 18%. So, today we’ll chat about the acquisition deal that was announced, how BLDR stock reacted, and what we can expect from the company moving forward.
Builders FirstSource Will Acquire ProBuild
This morning, Builders FirstSource announced that it has come to a definitive agreement to purchase ProBuild Holdings LLC. BLDR will be paying $1.63 billion for the acquisition of one of the United States’ largest professional building material suppliers. The acquisition will include no stock; as BLDR plans to pay for the acquisition in 100% cash. The acquisition is set to close in the second half of 2015.
What This Means For BLDR
As mentioned above, ProBuild Holdings is one of the nation’s largest professional building material suppliers. Given the fact that Builders FirstSource is a leading building materials supplier and of structural and related materials, this is a match made in heaven! That being said, we’re sure to see positive movement in BLDR stock as a result.
How The Market Reacted
It seems as though investors see the gold in the acquisition as well because of what we’ve seen so far today. Currently (12:28), BLDR is trading at $13.70 per share after a gain of 18.38% so far today.
What Do You Think?
Where do you think BLDR is headed and why? Let us know in the comments below!