LANGLEY, BC, Jan. 28, 2019 /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 Far West Plywood ("Far West") for a
total value of US$3.6 million (the
"Transaction").
Far West is a single site wholesale distributor located in
Northridge, California. With
estimated annual sales of US$12
million, they distribute architectural building products to
customers that fabricate end-products to commercial, industrial,
retail, residential, and institutional construction markets. Far
West will operate under the Hardwoods brand name going forward.
"The addition of Far West represents a contiguous expansion of
our current Southern 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
represents an appealing strategic fit of complimentary product
lines with minimal customer overlap."
"We have been successful with our acquisition strategy having
now completed eight acquisitions in the last eight years, adding
over $565 million of annual sales.
And our acquisitions pipeline remains active. We will continue 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 62 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.