LANGLEY, BC, June 11, 2018 /CNW/ - Hardwoods Distribution Inc.
("HDI" or the "Company") (TSX: HDI) today announced that it has,
through its subsidiary Rugby Holdings LLC ("Rugby"), purchased
certain of the distribution assets of Atlanta Hardwood Corporation
for a total value of US$3.7 million
(the "Transaction"). The distribution assets include Hardwoods of
Atlanta, LLC, Hardwoods of
North Georgia and Hardwoods of
Alabama, LLC, operating under the
trade name Hardwoods Incorporated. HDI did not acquire any of the
lumber manufacturing operations of Atlanta Hardwood
Corporation.
HDI will consolidate the Georgia distribution operations into its
existing Atlanta and Suwanee distribution facilities, and will
assume the Hardwoods Incorporated distribution facility in
Alabama. The acquired operations
are expected to add US$13 million in
new sales to HDI and will operate under the Company's Rugby
brand.
"The consolidation of distribution facilities in Georgia, and the addition of a new branch
facility in Alabama, provides
additional size and scale in these attractive markets," commented
Rob Brown, HDI's President and Chief
Executive Officer. "The Transaction represents an appealing
strategic fit of complimentary product lines and suppliers, with
minimal customer overlap. We have been successful with our
acquisition strategy having now completed seven acquisitions in the
last seven years, adding over $550
million of annual sales over that time period, and we will
continue to pursue 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 63 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.