Today's announced merger of Builders FirstSource (BFS) and BMC will shake up markets nationwide in lots of ways. For employees of both companies--as well as their competitors and vendors--the biggest changes likely will involve the closure of branches in markets that both dealers currently serve. BFS and BMC haven't announced which locations will be affected, but a look at the map reveals likely locations.
Organizers forecast the deal will generate $130 million to $150 million worth of synergies over the next three years. Here's the breakdown:
So, where might the cuts occur? Let's start with a map of the continental U.S., showing BFS locations in red and BMC in blue:
(Note: BFS also has extensive locations in Alaska, but none in Hawaii. BMC isn't in either state)
One can expect some of the synergies will take place in BFS' headquarters in Dallas and BMC's administrative offices in Raleigh, N.C., and Denver. Looking more closely, here are the major markets that have BFS and BMC locations are near each other.
Colorado's Front Range
The Salt Lake Valley
And along the South Carolina-Georgia coast ...