LANGLEY, B.C. - Hardwoods Distribution Inc. (TSX: HWD) announced today that it has, through its’ subsidiary, Rugby Holdings LLC., purchased Downes & Reader Hardwood Company Inc.
Downes & Reader is a distributor of hardwood lumber with four locations in the U.S. Northeast and annual sales estimated at US$25 million. The company services both the wholesale and retail customer segments. The acquisition will add over 2,400 new customers and strengthen Rugby’s position overall, as a distributor of hardwood lumber products.
Effective as of Monday July 17, 2017 the Downes & Reader locations will operate as part of the Rugby brand. At the 2017 AWFS Fair this week Hardwoods Distribution is represented as Hardwoods Paxton Rugby, Booth #4452.
“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, 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 our shareholders. Our acquisition strategy has been successful now having completed six acquisitions in the last six years, and we will continue to pursue transactions that complement our growth strategies.”
In March 2017, Rugby acquired Eagle Plywood and Lumber of Dallas, Texas and consolidated it into the Company's existing Rugby distribution facility in Dallas.
In June 2016, Hardwoods Distribution Inc. acquired Rugby Architectural Building Products with its 28 distribution centers servicing 35 states. With this acquisition Hardwoods formed the largest distributor network for decorative surfaces, hardwood lumber and related materials in North America.
Hardwoods Specialty Products is North America's largest distributor of architectural building products to the
residential and commercial construction markets. As of July 2017, the company operates a North American network of 63 distribution centres, as well as one sawmill with kiln drying operation. The 63 distribution centers service regional markets across North America and as such operate under the brand names Hardwoods, Paxton and Rugby. The triumvirate of Hardwoods, Paxton and Rugby provides specifiers and customers with a growing and diverse range of material choices sourced domestically and globally including its popular house branded products: Dragon Ply, EchoWood, Baltic Birch and Lotus.