Hardwoods Distribution, one of North America’s largest wholesale distributors of hardwood lumber and related sheet good products, announced that it had, through its subsidiary Rugby Holdings, purchased substantially all of the assets and assumed certain liabilities of Downes & Reader Hardwood Company Inc (D&R) for a total value of USD 6 million.
D&R is a distributor of hardwood lumber with four locations in the US Northeast and estimated annual sales of USD 25 million. It services both the wholesale and retail customer segments, adding over 2,400 new customers for the Company.
Rob Brown, Hardwoods Distribution President and CEO, commented:
“The US 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. This acquisition provides us with turnkey access to a comprehensive lumber products offering in the US 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 was financed by a draw on the company’s existing US credit facility.
In 1Q2017 Hardwoods Distribution decreased Adjusted EBITDA margin to 5.4%.
Earlier Hardwoods Distribution announced that it has, through its’ subsidiary Rugby Holdings LLC purchased substantially all of the assets and assumed certain liabilities of Eagle Plywood and Lumber.
About Hardwoods Distribution:
The company is one of North America’s largest wholesale distributors of hardwood lumber and related sheet good products, operating a network of 62 distribution centers across the region, as well as a hardwood sawmill and kiln drying operation in the U.S.