MONTREAL, Dec. 8, 2015 /CNW Telbec/ - Richelieu Hardware Ltd. (TSX: RCH) ("Richelieu" or the "Corporation") announced today that it has the intention to purchase by way of a normal course issuer bid (the "Bid"), for cancellation purposes, some of its common shares through the facilities of the Toronto Stock Exchange, beginning on December 11, 2015.
Under the Bid, the Corporation may repurchase for cancellation up to 977 393 common shares. This represents approximately 5% of its 19 547 869 issued and outstanding common shares as of November 30, 2015. These purchases will be made in accordance with applicable regulations over a maximum period of 12 months beginning on December 11, 2015 and ending on December 10, 2016. The average daily trading volume of Richelieu's common shares over the six (6) calendar months prior to the date hereof was 13 940. Accordingly, the Corporation is entitled to purchase, on any trading day, up to 3 485 common shares. The consideration that the Corporation will pay for any common shares acquired by it under the Bid will be paid cash at the market price of such common shares at the time of acquisition. The Corporation did repurchase 150 600 common shares during the last twelve months, in accordance with a duly authorized Normal Course Issuer Bid, for a weighted average price of $60.96.
The Corporation believes that the purchase by the Corporation of its own shares may, in appropriate circumstances, be a responsible investment of funds on hand.
About Richelieu Hardware Ltd.
Richelieu is a leading North American distributor, importer and manufacturer of specialty hardware and complementary products. Its products are targeted to an extensive customer base of kitchen and bathroom cabinet, furniture, and window and door manufacturers plus the residential and commercial woodworking industry, as well as a large customer base of hardware retailers, including renovation superstores. Richelieu offers customers a broad mix of high-end products sourced from manufacturers around the world. Its product selection consists of more than 100 000 different items targeted to a base of some 70 000 customers who are served by 66 centres in North America – 36 distribution centres in Canada, 28 in the United States and two manufacturing plants in Canada, specifically Cedan Industries Inc. which specializes in the manufacture of a wide variety of veneer sheets and edgebanding products and Menuiserie des Pins Ltée which manufactures components for the window and door industry and a broad selection of decorative mouldings.
SOURCE Richelieu Hardware Ltd.
For further information: Antoine Auclair, Vice-President and Chief Financial Officer, Tel: (514) 336-4144, www.richelieu.com