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An affiliate of Cerberus Capital Management dropped its tender offer for BlueLinx Holdings today after the private investment firm was unable to gather enough shares to make the deal work.
Cerberus ABP Investors (CAI), the affiliate, was already a majority shareholder in BlueLinx when it launched its takeover bid last July. At the time, Cerberus owned 55.4% of the outstanding common stock of BlueLinx; it offered $3.40, later upped to $4 per share for any outstanding stock, a deal valued at $58 million.
The tender offer was conditioned upon several things, including ownership of at least 90% of the outstanding BlueLinx common stock by the final deadline, which was Oct. 18. Cerberus chose not to raise its offer or extend the timeline for the bid.
Approximately 6.7 million shares have been tendered since the initial offer, according to Cerberus, but this was not enough to meet the 90% threshold. “CAI and Cerberus have instructed the depositary for the amended offer to promptly return all shares tendered,” the company said in a prepared statement.
Headquartered in Atlanta, BlueLinx is a leading distributor of building products throughout North America, offering more than 10,000 products from over 750 suppliers.