MONTREAL, Dec. 2 /CNW Telbec/ - Richelieu Hardware Ltd. (TSX: RCH) ("Richelieu" or the "Company") announces that the Toronto Stock Exchange has accepted its notice of intention to make a "normal course issuer bid" to purchase up to 1 088 987 common shares, representing 5% of the 21 779 759 outstanding common shares as at November 27, 2009 through the facilities of such exchange. The Company can only buy a maximum of 2 696 shares on a daily basis (per market day).
The number of shares that the Company intends to purchase and the time of such purchases will be determined by the Company, in its discretion. The purchase period will begin December 4th, 2009, and end on the earlier of December 3rd, 2010, or the date on which the Company will have either acquired the above-stated maximum number of shares or otherwise decided not to make any further purchases. All the shares purchased will be cancelled by the Company.
The Board of Directors of Richelieu has concluded that the purchase of 1 088 987 common shares represents an appropriate use of the Company's corporate funds. During the period of December 3, 2008, to November 27, 2009, the Company purchased 198 200 shares at a weighted average price of $21.04 per share.
To the best knowledge of the Company, after reasonable inquiry, no director, senior officer or any of their associates, no person acting jointly or in concert with the Company, and no person holding 10% or more of the common shares currently intends to sell common shares under this normal course issuer bid.
Richelieu Hardware Ltd. 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 close to 55,000 different items targeted to a base of over 38,000 customers who are served by 49 centres in North America - 31 distribution centres across Canada, 17 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, a broad selection of mouldings, and various types of tackboards and whiteboards.
SOURCE Richelieu Hardware Ltd.
For further information: For further information: Alain Giasson, Vice President and Chief Financial Officer, (514) 832-4036