MONTREAL, Jan. 11 /CNW Telbec/ - Richelieu Hardware Ltd. announces it
has closed the acquisition of the net assets of Outwater Hardware
("Outwater"), located in Lincoln Park, New Jersey, U.S. This company
operates a major specialty and decorative hardware distribution centre
that serves a base of some 18,000 residential and commercial
woodworking customers and kitchen, bathroom cabinet and furniture
manufacturers in all 50 U.S. states. In business since 1961, Outwater
has developed an operational strategy fully compatible with Richelieu,
including a one-stop shop approach, experienced customer service active
in the field and close to customers and a transactional website. For
Richelieu, the acquisition of Outwater represents additional sales of
more than $15 million on an annualized basis and an immediate
contribution to its earnings.
Through this acquisition, Richelieu strengthens its presence in the
United States where it had acquired four businesses in 2010, especially
in the Greater New York-New Jersey Area where it is now present with
three distribution centres, bringing its U.S. network to 23 centres. A
seasoned team thus joins Richelieu, and Outwater will continue to
benefit from the experience of its two shareholders who remain part of
As announced at the end of 2010, Richelieu had also signed two new
agreements for two other upcoming acquisitions. With the seven
acquisitions closed since the beginning of 2010 and the transactions
underway, the Company is expected to increase its sales by some
$100 million on an annualized basis.
Profile as at January 11, 2011
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 70,000 different items targeted to a base of some 60,000
customers who are served by 57 centres in North America - 34
distribution centres in Canada, 23 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.
Certain statements contained in this press release may constitute
forward-looking statements within the meaning of securities
legislation. Richelieu's management would like to point out that, by
their very nature, forward-looking statements involve a number of risks
and uncertainties such that the Company's actual and future results
could differ materially from those indicated. There can be no assurance
as to the materialization of the results, performance or achievements
as expressed in or underlying the forward-looking statements. Unless
required to do so pursuant to applicable securities legislation,
Richelieu's management assumes no obligation as to the updating or
revision of the forward-looking statements as a result of new
information, future events or changes.
SOURCE RICHELIEU HARDWARE LTD.
For further information:
Richard Lord,President and Chief Executive Officer
Alain Giasson,Vice-President and Chief Financial Officer
Tel: (514) 336-4144 www.richelieu.com