LANGLEY, BC, Dec. 9, 2020 /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 Aura Hardwoods ("Aura").
Aura is a wholesale architectural building products distributor
with estimated annual sales of US$53
million. Aura operates its business in Northern California across six locations in
Modesto, Rancho Cordova, San
Jose, San Luis Obispo,
Fresno, and Santa Cruz. Aura will operate under the
Hardwoods brand name going forward.
"California represents a
significant market opportunity for us and we are excited by the
addition of Aura to our operations in this state," commented
Rob Brown, HDI's President and Chief
Executive Officer. "Together with the acquisition of Far West
Plywood in 2019 and Diamond Hardwoods earlier this year we have
grown our location count in the California market from three to twelve
distribution sites, giving us comprehensive coverage in this
attractive growth market."
"Acquisitions continue to be a key component of our long term
growth strategy. Over half of HDI's annualized sales today come
from acquired businesses, and over the last two years we have added
over $150 million in annualized sales
to our top line. The acquisitions pipeline is active and with our
continued balance sheet strength, we intend to pursue additional
transactions that complement our strategies."
The transaction purchase price of US$12.7
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 71 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.