TRADING SYMBOL: Toronto Stock Exchange - HWD
LANGLEY, BC, Sept. 19, 2011 /CNW/ - Hardwoods Distribution Inc.
("Hardwoods") announced today it has completed its previously announced
acquisition (the "Acquisition") of the Frank Paxton Lumber Company LLC
("Paxton"). Paxton is a leading remanufacturer and distributor of
premium hardwood lumber, millwork and architectural sheet goods, with
branch operations located in Chicago, Cincinnati, Denver, Kansas City
and San Antonio. The Acquisition was structured as a purchase of
assets, principally trade accounts receivable, inventory, and
equipment. The purchase price of the acquired assets on the closing
date was US$13.9 million.
"We are pleased to have successfully completed the acquisition of
Paxton, one of the hardwood industry's premiere distributors," said
Lance Blanco, President and CEO of Hardwoods. "We are impressed with
the high quality of people and operations that comprise the Paxton
business. The Frank Paxton Lumber Company is an excellent fit with
Hardwoods market expansion strategies, and we welcome and look forward
to working with our new Paxton employees."
Hardwoods also announced today an amendment (the "Amendment") to the
revolving credit facility available to its U.S. operating subsidiary,
Hardwoods Speciality Products USLP ("Hardwoods USLP"). The Amendment
provides the consent of Hardwoods USLP's lender to the Acquisition.
The Amendment also increases the maximum borrowings available to
Hardwoods USLP under the credit facility, from US$25 million to US$30
million. Increasing the size of the credit facility provides Hardwoods
USLP with additional flexibility to borrow against the value of
collateral expected to arise from the purchase of the business
operations of Paxton.
About Hardwoods Distribution Inc.
Hardwoods Distribution Inc. ("Hardwoods") (TSX: HWD) is a publicly
traded company that holds, indirectly, a 100% ownership interest in
Hardwoods Specialty Products LP and Hardwoods Specialty Products US LP
(collectively, the "Business"). The Business is one of North America's
largest distributors of high-grade hardwood lumber and sheet goods to
the cabinet, moulding, millwork, furniture and specialty wood products
industries. The Business currently operates a network of 31
distribution centers in the U.S. and Canada.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This news release includes forward-looking statements. These involve
known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements or industry results to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
These forward-looking statements are identified by the use of terms and
phrases such as "anticipate", "believe", "estimate", "expect", "may",
"plan", "will", and similar terms and phrases, including references to
assumptions. Such statements may involve, but are not limited to: our
belief the Frank Paxton Lumber Company is an excellent fit with
Hardwoods market expansion strategies; and our belief that increasing
the size of the credit facility provides Hardwoods USLP with additional
flexibility to borrow against the value of collateral expected to arise
from the purchase of the business operations of Paxton.
These forward-looking statements reflect current expectations of
management regarding future events and operating performance as of the
date of this news release. Forward-looking statements involve
significant risks and uncertainties, should not be read as guarantees
of future performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved. A number
of factors could cause actual results to differ materially from the
results discussed in the forward-looking statements, including, but not
limited to: national and local business conditions; political or
economic instability in local markets; competition; consumer
preferences; spending patterns and demographic trends; legislation or
Although the forward-looking statements contained in this news release
are based upon what management believes to be reasonable assumptions,
management cannot assure investors that actual results will be
consistent with these forward-looking statements. The forward-looking
statements reflect management's current beliefs and are based on
information currently available.
All forward-looking information in this news release is qualified in its
entirety by this cautionary statement and, except as may be required by
law, Hardwoods undertakes no obligation to revise or update any forward
looking information as a result of new information, future events or
otherwise after the date hereof.
SOURCE Hardwoods Distribution Inc.
For further information:
Chief Financial Officer
Phone: (604) 881-1990
Fax: (604) 881-1995