HDI Completes Acquisition of Pacific Mutual Door

Hardwoods Distribution Inc. (“HDI” or the “Company”) announced the completion of its previously announced acquisition of substantially all of the assets, and assumption of certain liabilities, of Pacific Mutual Door Company (“Pacific”) (the “Transaction”). The effective date of the closing of the Transaction is October 28, 2019 .

“We are pleased to welcome the employees of Pacific to HDI”, said Rob Brown , President and Chief Executive Officer of HDI. “This strategic acquisition brings with it a highly profitable business model, and increases our existing presence in the attractive door and related millwork product category.”

The Transaction was completed for a purchase price of US$34.5 million and other consideration, subject to final working capital adjustments. The Company’s amended credit facility was used to satisfy the purchase price.

“Our balance sheet continues to be responsibly managed and, together with our amended credit facility, allows us to continue meeting our capital allocation priorities including executing on our pipeline of acquisition opportunities, and returning value to shareholders in the form of dividends and share re-purchases,” commented Mr. Brown.

About Hardwoods Distribution

HDI is North America’s largest wholesale distributor of architectural grade building products to the residential and commercial construction sectors. The Company operates a North American network of 67 distribution centres, as well as one sawmill and kiln drying operation.

Contact:

Faiz Karmally – Chief Financial Officer – fkarmally@hdidist.com – (604) 881-1982

Source: Hardwoods Distribution, Inc.