LANGLEY, BC, March 9, 2020 /CNW/ - Hardwoods Distribution Inc.
("HDI" or the "Company") (TSX: HDI) today announced that it has,
through its subsidiary Hardwoods Specialty Products US LP
("Hardwoods"), purchased substantially all of the assets and
assumed certain liabilities of Diamond Hardwoods ("Diamond") for a
total value of US$3.0 million (the
"Transaction"), subject to final working capital adjustments.
Diamond is a wholesale distributor with locations in
Fresno and Bakersfield, California. With estimated annual
sales of US$6 million, Diamond
distributes architectural building products to contractors,
industrial manufacturers, and retail customers. Diamond will
operate under the Hardwoods brand name going forward.
"The addition of Diamond complements our existing Northern California operations and provides
additional size and scale in an attractive growth market,"
commented Rob Brown, HDI's President
and Chief Executive Officer. "The Transaction broadens our service
capabilities in Northern
California, while adding bench strength to our team and a
customer set with minimal overlap."
"We have been successful with our acquisition strategy adding
$690 million in annualized sales and
45 new branch locations since 2011. The acquisitions pipeline
remains active and, with our continued balance sheet strength, we
intend to pursue additional 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 HDI
HDI 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 64 distribution centres
utilizing three industry leading distribution brands:
Hardwoods Specialty Products; the Frank Paxton Lumber Company; and
Rugby Architectural Building Products. HDI also operates one
sawmill and kiln drying operation, Hardwoods of Michigan.
SOURCE Hardwoods Distribution Inc.