Langley, BC–Hardwoods Distribution Inc., headquartered here, recently announced that it has, through its subsidiary Rugby Holdings LLC, purchased substantially all of the assets and assumed certain liabilities of Downes & Reader Hardwood Co. Inc., headquartered in Stoughton, MA, in a transaction with total value of $6 million.
“The U.S. Northeast is an attractive market with a population base of over 40 million people and we’re thrilled to have Downes & Reader, a highly respected Hardwood lumber distributor in the region, join our team,” commented Rob Brown, president and CEO of Hardwoods Distribution. “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 Hardwood Distribution’s existing U.S. credit facility.
Downes & Reader is a distributor of Hardwood lumber with four locations in the U.S. Northeast and estimated annual sales of $25 million. The company services both the wholesale and retail customer segments, adding over 2,400 new customers for the Hardwoods Distribution. Going forward, the Downes & Reader locations will operate as part of the Rugby brand. The Hardwoods Distribution does not expect to record any goodwill or intangible assets related to the transaction.
Hardwoods Distribution is among North America’s largest distributors of architectural grade building products to the residential and commercial construction markets. The company operates a North American network of 62 distribution centers, as well as one sawmill and kiln drying operation.
For further information, contact: Faiz Karmally, chief financial officer for Hardwoods Distribution at: 604-881-1982 or email: firstname.lastname@example.org.
The company’s website is www.hardwoods-inc.com.
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