Why This Matters: The agreement expands BlueLinx’s specialty building products business across 11 distribution centers and gives the distributor a larger position in the outdoor living category across markets in 11 states.
BlueLinx Holdings Inc. is expanding its outdoor living business through a new distribution agreement with Trex Company Inc., adding the composite decking manufacturer’s products across 11 distribution centers in the Midwest and Southeast.
Atlanta-based BlueLinx said it will distribute Trex decking and railing products from distribution centers in Indianapolis; St. Louis; Cincinnati; Erwin and Nashville, Tennessee; Atlanta; Birmingham, Alabama; Memphis, Tennessee; Gulfport, Mississippi; Little Rock, Arkansas; and Monroe, Louisiana.
The distribution territory covers markets in Missouri, Illinois, Ohio, Kentucky, West Virginia, Tennessee, Arkansas, Louisiana, Mississippi, Alabama and Georgia.
The agreement expands BlueLinx’s specialty products portfolio as the building products distributor looks to increase its exposure to higher-value product categories. The company distributes lumber, panels, engineered wood, siding, millwork and industrial products, along with other branded and private-label building products.
Adding Trex also gives BlueLinx another major brand in its outdoor living portfolio and creates opportunities to sell complementary products to existing dealers and contractors.
BlueLinx CEO Shyam Reddy said the distributor is seeking to expand its portfolio with established brands that can increase value to customers and create additional growth opportunities.
Trex, based in Winchester, Virginia, manufactures composite decking and residential railing as well as other outdoor living products. The company sells its products through more than 6,700 retail outlets across six continents.
For Trex, the BlueLinx agreement adds distribution capacity across a sizable portion of the central and southeastern U.S.
BlueLinx serves customers in all 50 states through its distribution network. Its customers include national home centers, professional dealers, cooperatives, specialty distributors, regional and local dealers and industrial manufacturers.
The Trex agreement is the latest move by BlueLinx to put more emphasis on specialty products, which the company views as an avenue for expanding sales beyond more commodity-oriented building materials while increasing the amount of business it does with existing customers.
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