BlueLinx has sold its Jackson, Miss.; Little Rock, Ark.; and Shreveport, La., facilities, the company announced today in a press release. The aggregate net proceeds of the sale is $1.9 million.
The distributor is looking to sell other facilities as well. According to the press release, BlueLinx "has six other non-operating facilities under contract with various purchasers in transactions expected to generate in excess of approximately $30 million of aggregate net proceeds before year-end." The sale of these facilities has yet to be finalized and the press release states that "there can be no assurance ... that any of these pending or potential sales will close on favorable terms, or at all."
The completed sale of the three facilities and the pending sale of the unnamed other six are part of BlueLinx's delevering strategy. “Earlier this year we announced an initiative to reduce the Company’s financial leverage and improve our working capital performance," Mitch Lewis, president and CEO of BlueLinx, said in the press release. "We are pleased to share that we are continuing to successfully execute on our strategy to deleverage BlueLinx by reducing our mortgage as a result of these transactions."
In April, BlueLinx announced it would close four distribution centers by Dec. 31 to help alleviate some of the financial burden.