BlueLinx Holdings has announced its intention to repurchase up to $10 million of its common shares on the open market, using its cash reserves, over the next two years. The share repurchase program was approved by BlueLinx’s board of directors as part of an effort to leverage the company’s strong cash position and strengthen the company’s overall financial position, according to a press release.
“We believe the company’s shares, particularly in light of recent market developments, are undervalued and represent an attractive investment opportunity,” said George Judd, BlueLinx president and CEO.
The company’s major shareholder, Cerberus ABP Investor LLC, has indicated that it does not intend to sell shares to BlueLinx as part of the repurchase program, the announcement said.
Headquartered in Atlanta, BlueLinx distributes building products through a network of more than 70 warehouses. It is listed on the New York Stock Exchange under the symbol BXC. The closing price for BlueLinx on Dec. 30 was $2.03 a share.