Doman Building Materials Group Ltd. Completes Acquisition of Fontana Wholesale Lumber and Wood Preserving
June 22 2021 - 12:00PM
Doman Building Materials Group Ltd. (“Doman” or “the Company”)
(TSX:DBM; DBM.NT) today announced that its wholly owned subsidiary
L.A. Lumber Treating, Ltd. (“L.A. Lumber”) has acquired the lumber
pressure treating plant, related equipment and business (the
“Plant”) formerly owned by Fontana Wood Preserving, Inc. and
Fontana Wholesale Lumber, Inc. (the “Acquisition”). L.A. Lumber
joins the Company’s California Cascade family of businesses.
The Plant is in Fontana, California and is
strategically located near another California Cascade facility,
adding fire retardant treating along with an almost doubling of our
overall capacity for Southern California, complementing our suite
of US West Coast offerings. The purchase price for the Plant was
satisfied in cash from existing credit facilities of the Doman
group and is expected to be accretive to earnings immediately.
Amar Doman, Chairman and CEO of Doman said, “We
are very excited with this Acquisition. The Plant complements our
US West Coast operations and strengthens our footprint in the
strong Southern California and southwestern US markets. This
strategic acquisition exemplifies our strategy of adding scale and
volume to the US West Coast in pressure treated lumber and
specialty wood products.”
About Doman Building Materials Group
Ltd.
Doman is headquartered in Vancouver, British
Columbia and trades on the Toronto Stock Exchange under the symbol
DBM and is a leading North American distributor of building
materials and is Canada's only fully integrated national
distributor in the building materials and related products sector.
Doman operates several distinct divisions: CanWel Building
Materials with multiple treating plant, planing facilities and
distribution centres coast-to-coast in all major cities and
strategic locations across Canada; founded in 1959, Hixson Lumber
Company in the central United States, with 19 treating plants, two
specialty planing mills and five specialty sawmills located in
eight states, headquartered in Dallas, Texas, distributing,
producing and treating lumber, fencing and building materials;
California Cascade in the western United States near Portland,
Oregon, San Francisco and Los Angeles, California with treating
facilities and distribution of building materials, lumber and
renovation products; founded in 1935, the Honsador Building
Products Group in 14 locations in the State of Hawaii, with
treating facilities, truss plants and distribution of a wide range
of building materials, lumber, renovation and electrical products.
In addition, through its CanWel Fibre division, the Company
operates a vertically integrated forest products company based in
Western Canada, operating from British Columbia to Saskatchewan,
also servicing the US Pacific Northwest. CanWel Fibre owns
approximately 117,000 acres of private timberlands, strategic
licenses and tenures, log harvesting and trucking operations,
several post and pole peeling facilities and two pressure-treated
specialty wood production plants and a specialty sawmill. Please
see our filings on SEDAR under Doman Building Materials Group Ltd.
(formerly, CanWel Building Materials Group Ltd.) for additional
information.
For further information regarding Doman please
contact:
Ali MahdaviInvestor Relations416-962-3300
ali.mahdavi@canwel.com
Certain statements in this press release may
constitute "forward-looking" statements including statements
regarding the Transaction and the anticipated benefits of the
Transaction (including earnings accretion). The following
statements are or may constitute forward-looking statements (1)
statements proceeded by, followed by, or that included words like
"may", "will", "would", "should", "expect", "believe", "plan",
"intend", "predict", "remain", "anticipate", "estimate",
"potential", "continue", "could", "might", "project", "targeting",
"future" and other similar terminology, and (2) other statements
regarding matters that are not historical facts. The matters
addressed in these statements are subject to a number of risks,
uncertainties and assumptions that may cause actual results to
differ materially from those projected, including, but not limited
to: the risk that the existing and acquired businesses will not be
integrated successfully; the risk that cost savings, synergies and
enhanced financial performance expected to result from the
Transaction may not be fully realized or may take longer to realize
than expected; disruption from the Transaction making it more
difficult to maintain relationships with customers, employees or
suppliers; the effect of general economic conditions, including
market demand for Doman’s or L.A. Lumber’s products, and prices for
such products; the availability, cost and other terms of capital;
the efficiency and consequences of operations improvement
initiatives; the effect of forestry, land use, environmental and
other governmental regulations; and the risk of losses from fires,
floods and other natural disasters. These and other factors,
including the risk factors set out in Doman’s annual information
dated March 12, 2021, could cause or contribute to actual results
differing materially from those contemplated by forward-looking
statements. Accordingly, readers should not place undue reliance on
any forward-looking statements or information. Forward-looking
statements contained in this press release speak only as of the
date of this press release. Doman does not undertake, and
specifically disclaims, any obligation to update or revise any
forward-looking statements or information, whether as a result of
new information, future developments or otherwise, except as
required by applicable law.
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