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Hardwoods acquires Downes & Reader Hardwood Company in US Northeast
July 18, 2017 - Hardwoods Distribution Inc., through its subsidiary Rugby Holdings LLC, has purchased substantially all of the assets and assumed certain liabilities of Downes & Reader Hardwood Company Inc. for a total value of US$6.0 million.
July 18, 2017 By Hardwoods Distribution Inc.
D&R is a distributor of hardwood lumber with four locations in the U.S. Northeast and estimated annual sales of US$25 million. 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 CEO. “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 US credit facility.
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