Delivering on BuildDirect's strategy to
accelerate growth through its leading omnichannel platform by
making select, accretive acquisitions
VANCOUVER, BC, Nov. 17, 2021 /CNW/ - BuildDirect.com
Technologies Inc. (TSXV: BILD) ("BuildDirect" or "Company"), today
announced that it acquired Michigan-based full-service flooring retailer,
Superb Flooring & Design LLC ("Superb" or the "Acquisition")
for a total purchase price of USD $10
million. The acquisition closed on the morning of
November 17, 2021.
Superb is an established brand name serving Pro builder
customers (home builders, condominium developers, commercial and
residential contractors, interior designers, architects, and
multi-family property managers) across the U.S. mid-West, which
when compared with other Pro customer segments tends to be more
concentrated, and larger in size and scale. In the period ended
September 30, 2021 Superb generated
unaudited revenue of over USD $18
million and greater than $2
million in EBITDA in the trailing 12 months.
Superb's focus on exceptional customer service and over 50 years
of collective experience provides BuildDirect with the opportunity
to capture additional market share and on-the-ground expertise in
serving the Pro customer. The Superb platform represents strong
product selection assistance together with reliable project
management, and installation services to its builder Pros.
Leveraging the synergies available through BuildDirect's digital
and supply chain capabilities will advance Superb's ability to
serve its existing Pro customers and provides the potential to grow
our combined market share in Michigan and the surrounding area.
"Uniting with Superb will enable BuildDirect to meet more
customers where they are, helping them to adapt to a new home
improvement digital era through our innovative digital platform and
supply chain network," said Dan
Park, CEO of BuildDirect. "We're confident in our strategy
to leverage our digital and delivery platform, and becoming a true
innovator in the space."
Ethan Rudin, CFO of BuildDirect
added, "As BuildDirect's second acquisition in Michigan, we welcome the opportunity to work
with the expert teams at both Superb and FloorSource to rapidly
expand our combined share of the mid-West U.S. Pro market. Superb's
longstanding Pro builder customer base aligns directly with our
strategy to acquire B2B-focused targets, increasing our Pro
customer base, and improving the end-to-end experience for these
key customers. Our acquisition pipeline remains robust with
accretive opportunities at various stages of development."
"BuildDirect and Superb are joining forces to offer a unique
omnichannel experience to our customers," said Lonnie Pukoff, founder of Superb Flooring &
Design. "In addition to its digital platform, BuildDirect's product
selection, heavyweight shipping infrastructure, and offshore
sourcing capabilities will create advantages for Superb. We are
thrilled to work with BuildDirect to reach our common goal of
providing quality service and products to our Pro customers."
Acquisition Details
BuildDirect has purchased 100% of
the fully diluted outstanding capital stock of Superb for a total
purchase price of USD $10 million
(the "Purchase Price") and will be fully funded in cash. The
Purchase Price is payable pursuant to an initial payment on close
of the Acquisition, together with certain deferred payments
following the closing date of the Acquisition a portion of which is
subject to Superb's achievement of certain performance metrics. The
Purchase Price is also subject to customary post-closing working
capital adjustments.
The Acquisition is an arm's length transaction for the purposes
of the policies of the TSX Venture Exchange
("TSXV"). BuildDirect does not expect shareholder or
regulatory approval will be required. Management understands that
this acquisition qualifies as an "Exempt Transaction" under
TSXV Policy 5.3. No finder's fees have been or will be paid by
BuildDirect in relation to this acquisition."
About BuildDirect
BuildDirect (TSXV: BILD) is an
innovative technology platform for purchasing and selling building
materials online. The BuildDirect platform connects homeowners and
home improvement professionals in North
America with suppliers and sellers of quality building
materials from around the world, including flooring, tile, decking
and more. BuildDirect's growth, proprietary heavyweight delivery
network, and digital reach have served to solidify its role as a
ground-breaking player in the home improvement industry. For more
information, visit www.BuildDirect.com.
Forward-Looking Information
This press release
contains statements which constitute "forward-looking statements"
and "forward-looking information" within the meaning of applicable
securities laws (collectively, "forward-looking statements"),
including statements regarding the plans, intentions, beliefs and
current expectations of the Company with respect to future business
activities and operating performance. Forward-looking statements
are often identified by the words "may", "would", "could",
"should", "will", "intend", "plan", "anticipate", "believe",
"estimate", "expect" or similar expressions. These statements
reflect management's current beliefs and expectations and are based
on information currently available to management as at the date
hereof.
Forward-looking statements in this press release may include,
without limitation, statements relating to BuildDirect's ability to
take advantage of trends in home improvement investment, its
innovative digital and heavyweight supply chain platform and
ability to leverage the same, the omni-channel experience to be
offered to customers; realization of synergies and overall
integration of Superb's operations with BuildDirect (including, but
not limited to, Superb's ability to improve service to its existing
customers as well as increase Superb's market share in the state of
Michigan and BuildDirect's ability
to increase its Pro customer base and improve the end-to-end
experience for its customers); capturing of additional Pro customer
market share; quality service and products; future
acquisitions; Superb's potential growth; and the Company's ability
to make future payments in connection with the purchase of
Superb.
Forward-looking statements involve significant risk,
uncertainties and assumptions. Many factors could cause actual
results, performance or achievements to differ materially from the
results discussed or implied in the forward-looking statements.
Among those factors are changes in consumer spending, availability
of mortgage financing and consumer credit, changes in the housing
market, changes in trade policies, tariffs or other applicable laws
and regulations both locally and in foreign jurisdictions,
availability and cost of goods from suppliers, fuel prices and
other energy costs, interest rate and currency fluctuations,
retention of key personnel and changes in general economic,
business and political conditions. These forward-looking statements
may be affected by risks and uncertainties in the business of the
Company and general market conditions, including COVID-19.
Should one or more of these risks or uncertainties materialize,
or should assumptions underlying the forward-looking statements
prove incorrect, actual results may vary materially from those
described herein as intended, planned, anticipated, believed,
estimated or expected. These factors should be considered carefully
and readers should not place undue reliance on the forward-looking
statements.
Although the forward-looking statements contained in this press
release reflect the Company's expectations, estimates or
projections concerning future results or events based on the
opinions, assumptions and estimates of management considered
reasonable at the date the statements are made, the Company cannot
assure readers that actual results will be consistent with these
forward-looking statements. There may be other risks, uncertainties
and factors that cause results not to be as anticipated, estimated
or intended and such changes could be material. These
forward-looking statements are made as of the date of this press
release, and BuildDirect assumes no obligation to update or revise
them to reflect new events or circumstances, except as required by
law.
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SOURCE BuildDirect.com Technologies Inc.