TRADING SYMBOL: Toronto Stock Exchange -
HDI
Closes on the Amended US Credit
Facility
LANGLEY, BC, Oct. 28, 2019 /CNW/ - Hardwoods Distribution Inc.
("HDI" or the "Company") (TSX: HDI) today announced the completion
of its previously announced acquisition of substantially all of the
assets, and assumption of certain liabilities, of Pacific Mutual
Door Company ("Pacific") (the "Transaction"). The effective date of
the closing of the Transaction is October
28, 2019.
"We are pleased to welcome the employees of Pacific to HDI",
said Rob Brown, President and Chief
Executive Officer of HDI. "This strategic acquisition brings with
it a highly profitable business model, and increases our existing
presence in the attractive door and related millwork product
category."
The Transaction was completed for a purchase price of
US$34.5 million and other
consideration, subject to final working capital adjustments. The
Company's amended credit facility was used to satisfy the purchase
price.
"Our balance sheet continues to be responsibly managed and,
together with our amended credit facility, allows us to continue
meeting our capital allocation priorities including executing on
our pipeline of acquisition opportunities, and returning value to
shareholders in the form of dividends and share re-purchases,"
commented Mr. Brown.
About HDI
HDI is North America's largest
wholesale distributor of architectural grade building products to
the residential and commercial construction sectors. The Company
operates a North American network of 67 distribution centres, as
well as one sawmill and kiln drying operation.
Forward-Looking Statements
Certain statements in this news release may constitute
"forward-looking information" within the meaning of applicable
securities laws that involve known and unknown risks, uncertainties
and other factors that may cause actual results, performance or
achievements or industry results to be materially different from
any future results, performance or achievements or industry results
expressed or implied by such forward-looking information.
Forward-looking information is identified by the use of terms and
phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will",
"would", and similar terms and phrases, including references to
assumptions. Such information may involve, but is not limited to,
comments with respect to strategies, expectations, planned
operations or future actions. Forward-looking information in this
news release includes, without limitation, statements with respect
to: continue meeting our capital allocation priorities including
executing on our pipeline of acquisition opportunities, and
returning value to shareholders in the form of dividends and share
re-purchases. Actual events or results may differ materially.
The forward-looking information in this news release are based
on assumptions which include, but are not limited to: no
undisclosed liabilities associated with the Transaction; there are
no material exchange rate fluctuations between the Canadian and US
dollar that affect the Company's performance; the general state of
the economy does not worsen; the Company and Pacific do not lose
any key personnel; there are no decreases in the supply of, demand
for, or market values of hardwood lumber or sheet goods that harm
the Company's business; the Company does not incur material losses
related to credit provided to its customers; the Company's products
are not subjected to negative trade outcomes; the Company is able
to sustain its level of sales and earnings margins; the Company is
able to grow its business long term and to manage its growth; the
Company is able to integrate acquired businesses; there is no new
competition in the markets in which the Company operates that lead
to reduced sales and profitability; the Company can comply with
existing regulations and will not become subject to more stringent
regulations; no material product liability claims; importation of
products manufactured with hardwood lumber or sheet goods does not
increase and replace products manufactured in North America; the Company's management
information systems upon which it is dependent are not impaired;
and, the Company's insurance is sufficient to cover losses that may
occur as a result of its operations.
The forward-looking information in this news release are subject
to risks, uncertainties and other factors that could cause actual
results to differ materially from historical results or results
anticipated by the forward-looking information. The factors which
could cause results to differ from current expectations include,
but are not limited to: potential undisclosed liabilities
associated with the Transaction; exchange rate fluctuations between
the Canadian and US dollar could affect the Company's performance;
the Company's results are dependent upon the general state of the
economy; the Company depends on key personnel, the loss of which
could harm its business; decreases in the supply of, demand for, or
market values of hardwood lumber or sheet goods could harm the
Company's business; the Company may incur losses related to credit
provided to the Company's customers; the Company's products may be
subject to negative trade outcomes; the Company may not be able to
sustain its current level of sales or earnings margins; the Company
may be unable to grow its business long term or to manage any
growth; the Company may be unable to integrate acquired businesses;
competition in the Company's markets may lead to reduced sales and
profitability; the Company may fail to comply with existing
regulations or become subject to more stringent regulations;
product liability claims could affect the Company's sales,
profitability and reputation; importation of products manufactured
with hardwood lumber or sheet goods may increase, and replace
products manufactured in North
America; the Company is dependent upon its management
information systems; the Company's insurance may be insufficient to
cover losses that may occur as a result of the Company's
operations; the Company's credit facilities affect its liquidity,
contain restrictions on the Company's ability to borrow funds, and
impose restrictions on distributions that can be made by certain
subsidiaries of the Company; the market price of the Company's
common shares will fluctuate; and there is a possibility of
dilution of the Company's existing shareholders. More information
about the risks and uncertainties affecting HDI's business can be
found in the "Risk Factors" section of its Annual Information Form
dated March 14, 2019 which is
available under the HDI's profile on SEDAR at www.sedar.com.
Although HDI has attempted to identify factors that would cause
actual actions, events or results to differ materially from those
disclosed in the forward-looking or information in this news
release, there may be other factors that cause actions, events or
results not to be as anticipated, estimated or intended. Also, many
of the factors are beyond the control of HDI. Accordingly, readers
should not place undue reliance on forward-looking information in
this news release. The forward-looking information is made as of
the date of this news release, and HDI assumes no obligation to
publicly update or revise such forward-looking information to
reflect new information, subsequent or otherwise, except as may be
required by applicable securities law. The forward-looking
information contained herein is expressly qualified in its entirety
by this cautionary statement.
SOURCE Hardwoods Distribution Inc.