LANGLEY, BC, March 13, 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 Eagle Plywood and Lumber ("Eagle") for a total value of US$0.4 million plus up to an additional US$0.2 million subject to future sales performance (the "Transaction").
Eagle is a single site wholesale distributor located in Dallas, Texas, with estimated annual sales of US$5.0 million, distributing non-structural architectural grade building products to customers that supply end-products to the commercial, industrial, retail, residential and institutional construction end-markets. The assets and sales associated with the Eagle acquisition will be consolidated into the Company's existing Rugby distribution facility in Dallas.
"This acquisition is a good example of our ability to leverage the robust pipeline we acquired as part of the acquisition of Rugby Architectural Building Products last year," commented Rob Brown, Hardwoods' President and CEO. "Dallas is a significant market and the addition of Eagle to our existing operations in the region adds customers and bench strength to our team."
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 non-structural architectural grade building products to the residential and commercial construction markets. The Company operates a North American network of 60 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