MONTREAL, Dec. 12, 2016 /CNW Telbec/ - Richelieu Hardware Ltd. (TSX: RCH) ("Richelieu" or the "Corporation") announced today that it has the intention to purchase by way of a normal course issuer bid (the "Bid"), for cancellation purposes, some of its common shares through the facilities of the Toronto Stock Exchange.
Under the Bid, the Corporation may repurchase for cancellation up to 1,500,000 common shares. This represents approximately 2.6% of its 57,920,466 issued and outstanding common shares as of November 30, 2016. These purchases will be made in accordance with applicable regulations over a maximum period of twelve (12) months beginning on December 14, 2016 and ending on December 13, 2017. The average daily trading volume of Richelieu's common shares over the six (6) calendar months prior to the date hereof was 30,376. Accordingly, the Corporation is entitled to purchase, on any trading day, up to 7,594 common shares. The consideration that the Corporation will pay for any common shares acquired by it under the Bid will be paid cash at the market price of such common shares at the time of acquisition. The Corporation did repurchase 1,004,700 common shares during the last twelve (12) months, in accordance with a duly authorized Normal Course Issuer Bid, for a weighted average price of $22.98.
The Corporation believes that the purchase by the Corporation of its own shares may, in appropriate circumstances, be a responsible investment of funds on hand.
About Richelieu Hardware Ltd.
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, storage and closet, home furnishing and office furniture manufacturers, residential and commercial woodworkers, and hardware retailers including renovation superstores. Richelieu offers customers a broad mix of high-end products sourced from manufacturers worldwide. Its product selection consists of over 110,000 different items targeted to a base of more than 70,000 customers who are served by 69 centres in North America – 36 distribution centres in Canada, 31 in the United States and two manufacturing plants in Canada, specifically Cedan Industries Inc. which specializes in the manufacturing 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.
SOURCE Richelieu Hardware Ltd.
For further information: Antoine Auclair, Vice-President and Chief Financial Officer, Tel: (514) 336-4144, www.richelieu.com