LANGLEY, BC, Dec. 14, 2020 /CNW/ - Hardwoods Distribution
Inc. ("HDI" or the "Company") (TSX: HDI) today announced that it
has, through its subsidiary Rugby Holdings LLC ("Rugby"), purchased
substantially all of the assets and assumed certain liabilities of
River City Millwork Inc. ("River").
River, located in Rockford
Illinois, is a wholesale distributor of interior and
exterior doors, custom millwork, and other ancillary products.
River's estimated annual sales are US$14
million and they will operate under the Rugby brand name
going forward.
"We are pleased to announce the acquisition of River City
Millwork," commented Rob Brown,
HDI's President and Chief Executive Officer. "River complements the
Pacific Mutual Door business we purchased in the fourth quarter of
2019, strengthening existing supply relationships and expanding our
geographic footprint."
"Over the last several years we have been strategically growing
our presence in doors and related millwork distribution. The
performance of this product category has been one of our strongest
year-to-date and now represents over 15% of consolidated revenues.
We expect this product category to benefit from the increase in
U.S. residential home building and repair and remodel
construction."
River is the Company's third acquisition in 2020 and reflects
the Company's continued execution of its acquisitions strategy. The
North American architectural building products distribution
industry remains highly fragmented. With HDI's robust acquisitions
pipeline and strong balance sheet, the Company intends to pursue
additional accretive transactions that complement its growth
strategies.
The transaction purchase price of US$4.2
million (subject to final working capital adjustments) 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 73 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.