TRADING SYMBOL: Toronto Stock Exchange - HWD
LANGLEY, BC, June 3, 2013 /CNW/ - Hardwoods Distribution Inc.
("Hardwoods") announced today the acquisition of certain assets (the
"Transaction") associated with the business known as Olam Wood Products
("OWP" or the "Business") conducted in Leland, North Carolina. The
Business is an importer of high quality tropical lumber and decking
material from Africa and South America for resale to industrial
customers and wholesale distributors located in North America.
Hardwoods also amended its US credit facility concurrently with closing
The Transaction is structured as an asset acquisition with a purchase
price of US$2.8 million. Closing date for the Transaction was May 31,
The acquired assets consist of inventory and some equipment. Hardwoods
also hired the employees of OWP, and assumed the existing lease of the
Business comprising 40,000 square feet of warehouse and office space in
No other liabilities or contractual obligations were assumed by
Hardwoods as part of the Transaction.
Hardwoods existing credit facilities were utilized to finance the
purchase price. Hardwoods US operating subsidiary amended its credit
facility to increase maximum borrowings available under the facility
from US$45 million to US$50 million.
"The acquisition of the operating assets of OWP is an excellent fit with
our growth strategy," said Lance Blanco, President and CEO of
Hardwoods. "The acquired Business builds upon Hardwoods
well-established strength as an importer of hardwood products by
extending our direct sourcing capabilities to tropical lumber products
from Africa and South America. The acquisition adds more than $4
million annually to Hardwoods sales, is expected to contribute to
current year earnings, and gives us a presence on the US east coast.
With an improving US housing market we believe this is a well-timed and
well-priced addition to our US branch network," said Mr. Blanco.
About Hardwoods Distribution Inc.
Hardwoods Distribution Inc. (TSX: HWD) is one of North America's
largest wholesale distributors of hardwood lumber and related sheet
good products, operating a network of 31 distribution centres in the US
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This news release includes forward-looking statements. These involve
known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements or industry results to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
These forward-looking statements are identified by the use of terms and
phrases such as "anticipate", "believe", "estimate", "expect", "may",
"plan", "will", and similar terms and phrases, including references to
assumptions. Such statements may involve, but are not limited to: our
belief the Business builds upon Hardwoods well-established strength as
an importer of hardwood products by extending our direct sourcing
capabilities to tropical lumber products from Africa and South America;
our belief that the acquisition adds more than $4 million annually to
Hardwoods sales and is expected to contribute to current year earnings.
These forward-looking statements reflect current expectations of
management regarding future events and operating performance as of the
date of this news release. Forward-looking statements involve
significant risks and uncertainties, should not be read as guarantees
of future performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved. A number
of factors could cause actual results to differ materially from the
results discussed in the forward-looking statements, including, but not
limited to: national and local business conditions; political or
economic instability in local markets; competition; consumer
preferences; spending patterns and demographic trends; legislation or
Although the forward-looking statements contained in this news release
are based upon what management believes to be reasonable assumptions,
management cannot assure investors that actual results will be
consistent with these forward-looking statements. The forward-looking
statements reflect management's current beliefs and are based on
information currently available.
All forward-looking information in this news release is qualified in its
entirety by this cautionary statement and, except as may be required by
law, Hardwoods undertakes no obligation to revise or update any forward
looking information as a result of new information, future events or
otherwise after the date hereof.
SOURCE: Hardwoods Distribution Inc.
For further information:
Chief Financial Officer
Phone: (604) 881-1990
Fax: (604) 881-1995