Richelieu hardware hits more than $1 billion in annual sales
January 24, 2019 | 12:21 pm CST
MONTREAL - Richelieu, a Canadian manufacturer of specialty hardware for the kitchen, bath, and closet industries, saw more than $1 billion in sales in 2018, the year of its 50th anniversary.
The company said its success results from two U.S. acquisitions, and investing in market development, facility improvements, and new technologies.
"The acquisition of Cabinet & Top Supply, Inc. further enhanced our position in Florida, where we now operate nine distribution centers. The acquisition of Chair City Supply, Inc. strengthens our presence, product offering and customer base in the important furniture manufacturer market," said Richelieu CEO Richard Lord in a press release.
"In line with previous years, our financial position was impeccable, with almost no debt and an excellent liquidity ratio. Market capitalization stood at $1.5 billion. We are pursuing our growth strategy on a solid footing, giving priorities on operational profitability, sales synergies with our recent acquisitions, and strategic investments aimed at increasing the long-term value."
Consolidated sales reached $1,004.4 million, an increase of $61.9 million or 6.6% over 2017, of which 3.2% from internal growth and 3.4% from acquisitions. At comparable exchange rates to 2017, the consolidated sales growth would have been 6.9% for the year ended November 30, 2018.
Sales to manufacturers grew to $850.9 million, compared with $800.0 million for 2017, an increase of $50.9 million or 6.4%, of which 2.4% from internal growth and 4.0% from acquisitions. Sales to hardware retailers and renovation superstores grew by 7.7% or $11.0 million to total $153.5 million.
In Canada, Richelieu achieved sales of $678.3 million, compared with $634.6 million for 2017, up by $43.7 million or 6.9%, of which 4.1% from internal growth and 2.8% from acquisitions. Sales to manufacturers rose to $549.1 million, up by $42.1 million or 8.3%, of which 4.8% from internal growth and 3.5% from acquisitions.
In the U.S., the Richelieu recorded sales of $252.7 million, compared with $236.5 million for 2017, an increase of $16.2 million or 6.9%, of which 2.2% from internal growth and 4.7% from acquisitions. Sales to manufacturers totaled $233.9 million, compared with $225.0 million, an increase of $8.9 million or 4.0% over 2017, of which 4.8% from acquisitions and, due to the termination of a supply agreement with a major customer, an internal decrease of 0.8%.
Richelieu runs two manufacturing plants and 72 distribution facilities across North America. The company makes more than 110,000 products in a wide variety of categories including: furniture, glass and building decorative and functional hardware, lighting systems, finishing and decorating products, ergonomic workstation components, kitchen and closet storage solutions, sliding door systems, decorative and functional panels, high-pressure laminates and floor protection products.
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