Hardwoods acquires Downes & Reader for $6M (U.S.)
HARDWOODS DISTRIBUTION Inc. has, through its subsidiary Rugby Holdings LLC, purchased substantially all of the assets and assumed certain liabilities of Downes & Reader Hardwood Company Inc. (D&R) for a total value of $6.0-million (U.S.).
D&R is a distributor of hardwood lumber with four locations in the United States Northeast and estimated annual sales of $25-million (U.S.). D&R services both the wholesale and retail customer segments, adding over 2,400 new customers for the company. Going forward, the D&R locations will operate as part of the Rugby brand. The company does not expect to record any goodwill or intangible assets related to the transaction.
“The U.S. Northeast is an attractive market with a population base of over 40 million people, and we’re thrilled to have D&R, a highly respected hardwood lumber distributor in the region, join our team,” commented Rob Brown, Hardwoods’ president and chief executive officer. “This acquisition provides us with turnkey access to a comprehensive lumber products offering in the U.S. Northeast, brings us a significant number of new customers and is immediately accretive to shareholders. We have been successful with our acquisition strategy, having now completed six acquisitions in the last six years, 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 U.S. credit facility.
About Hardwoods Distribution Inc.
Hardwoods is North America’s largest distributor of ar-
chitectural-grade building products to the residential and commercial construction markets. The company operates a North American network of 62 distribution centres, as well as one sawmill and kiln drying operation.
Robert James Brown, Peter Morris Bull, Michelle Lewis, Jim Macaulay, Edward Lawrence Sauder, William Lawrence Sauder, Graham McGregor Wilson
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