LANGLEY, BC, July 17, 2017 /CNW/ - Hardwoods Distribution Inc. ("Hardwoods" or the "Company") (TSX: HWD) today announced that it has, through its subsidiary Rugby Holdings LLC ("Rugby"), purchased substantially all of the assets and assumed certain liabilities of Downes & Reader Hardwood Company Inc. ("D&R") for a total value of US$6.0 million (the "Transaction").
D&R is a distributor of hardwood lumber with four locations in the US Northeast and estimated annual sales of US$25 million. D&R services both the wholesale and retail customer segments, adding over 2,400 new customers for the Company. Going forward the D&R locations will operate as part of the Rugby brand. The Company does not expect to record any goodwill or intangible assets related to the Transaction.
"The US Northeast is an attractive market with a population base of over 40 million people and we're thrilled to have D&R, a highly respected hardwood lumber distributor in the region, join our team," commented Rob Brown, Hardwoods' President and CEO. "This acquisition provides us with turnkey access to a comprehensive lumber products offering in the US Northeast, brings us a significant number of new customers, and is immediately accretive to shareholders. We have been successful with our acquisition strategy having now completed six acquisitions in the last six years, and we will continue to pursue transactions that complement our internal growth strategies."
The Transaction purchase price was financed by a draw on the Company's existing US credit facility.
About Hardwoods Distribution Inc.
Hardwoods is North America's largest distributor of architectural grade building products to the residential and commercial construction markets. The Company operates a North American network of 62 distribution centres, as well as 1 sawmill and kiln drying operation.
SOURCE Hardwoods Distribution Inc.
For further information: Faiz Karmally, Chief Financial Officer, Phone: (604) 881-1982; email: [email protected]; Website: http://www.hardwoods-inc.com