Hunton & Williams Advises Stock Building Supply Holdings in $1.5B Merger with Building Materials Holding Corporation

NEW YORK ― Hunton & Williams LLP is advising Stock Building Supply Holdings, Inc. (NASDAQ: STCK) in its $1.5 billion strategic stock-for-stock merger with Building Materials Holding Corporation. The combined company is expected to have an implied pro forma enterprise value of $1.5 billion based on Stock Building Supply’s closing price on June 2. The transaction will create a premier provider of lumber, diversified building products and construction services with over $2.7 billion in pro forma 2014 revenues and enhanced product and service offerings.

Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, BMC shareholders will receive 0.5231 newly issued Stock Building Supply shares for each BMC share. Upon the closing of the transaction, BMC shareholders will own approximately 60 percent of the merged entity, with Stock Building Supply stockholders owning approximately 40 percent. The transaction is structured to be tax-free to the shareholders of both companies, and is expected to close in the fourth quarter of 2015, subject to approval by both Stock Building Supply and BMC shareholders and other customary closing conditions.

The legal team for Stock Building Supply Holding was led by corporate partners Douglas S. Granger and Gary E. Thompson.