Cerebus raises BlueLinx offer

Cerberus ABP Investor announced today that it has raised its offer for the remaining outstanding shares of BlueLinx Holdings to $4 per share. The investment firm has also extended the tender offer to midnight on Friday, Oct. 8.

Cerberus, an affiliate of Cerberus Capital Management, already owns a 55% majority stake in BlueLinx. Its initial offer, $3.40 a share, was made on July 21. According to a filing with the Securities and Exchange Commission, the new offering price boosts the value of the transaction to $58.4 million from $49.6 million.

BlueLinx, an Atlanta-based distributor of building materials, still has approximately 14.6 million outstanding shares. The company’s board of directors has appointed a special committee to explore the idea of going private, but no formal recommendation has been submitted to shareholders. In a press release, Cerebus said it expects the committee to give its blessing to the tender offer.