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.
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.
View original content: http://www.newswire.ca/en/releases/archive/June2018/11/c8071.html
For further information: Faiz Karmally, Chief Financial Officer, Phone: (604) 881-1982; email: firstname.lastname@example.org; Website: http://www.hdidist.com
CO: Hardwoods Distribution Inc.
CNW 20:32e 11-JUN-18