Builders FirstSource, a Fortune 500 company manufacturing and supplying building materials, agreed to merge with BMC Stock Holdings, an American construction supply company, in a $2.6bn deal. BMC shareholders will receive a fixed exchange ratio of 1.3125 shares of Builders FirstSource common stock for each share of BMC common stock. Upon completion of the merger, existing Builders FirstSource shareholders will own c. 57% and existing BMC shareholders will own c. 43% of the combined company. “This is a transformational opportunity that unites two outstanding and complementary companies, providing enhanced scale and superior returns as we build upon a new, larger platform. Builders FirstSource and BMC together will have a very diverse portfolio of value-added offerings and greater resources to more closely partner with and serve customers. The transaction is expected to produce tremendous value for the shareholders of both companies through the realization of significant cost synergies, the realization of attractive growth opportunities and the acceleration of technological innovation," Chad Crow, Builders FirstSource CEO.