Business
Hardwoods Announces Acquisition of Hardwoods of Michigan and Amendment to US Credit Facility
TRADING SYMBOL: Toronto Stock Exchange - HWD LANGLEY, BC , April 28, 2014 /CNW/ - ...
About this update from Adentra Inc
[{"type":"text","content":"\n\n\nTRADING SYMBOL: Toronto Stock Exchange - HWD\n\n\nLANGLEY, BC, April 28, 2014 /CNW/ - Hardwoods Distribution Inc.\n (\"Hardwoods\" or the \"Company\") announced today the acquisition of the\n business operations (the \"Transaction\") of Hardwoods of Michigan, Inc.\n (\"HMI\").  HMI is a fully integrated producer of high quality hardwood\n lumber from its sawmill and kiln drying operations located on 23 acres\n in Clinton, Michigan.  HMI has been in business for over 40 years and\n has a broad and diverse customer base throughout North America as well\n as in Europe and Asia.  HMI sells hardwood lumber to customers that\n manufacture cabinets, flooring, furniture, mouldings, doors, windows\n and other custom millwork products.\n\n\nTransaction Highlights \n\n\n\nThe Transaction is structured as an asset acquisition with a purchase\n price of US$15.4 million (subject to final working capital adjustments\n to be calculated after closing).\n\n\nThe acquired assets consist of accounts receivable, prepaid assets,\n inventory, machinery and equipment, and land and buildings.  Hardwoods\n also hired all employees of HMI.\n\n\nHardwoods credit facilities were utilized to finance the purchase\n price.  Hardwoods US operating subsidiary amended its credit facility\n to increase maximum borrowings available under its credit facility from\n US$50 million to US$79.1 million, and extended the term of the credit\n facilities to April 27, 2017.\n\n\nAfter financing the Transaction, Hardwoods expects to have sufficient\n unused borrowing availability under the credit facilities to continue\n to pursue its growth strategy.\n\n\n\n\n\n\n\"With this accretive Transaction, Hardwoods continues to grow its\n business with an attractively priced acquisition that is well-timed to\n the ongoing recovery in the US housing market,\" said Lance Blanco,\n President and CEO of Hardwoods.  \"Forecasters continue to predict a\n multi-year strengthening trend in US residential construction,\n suggesting a sustainable replacement level for US housing of 1.3 to 1.5\n million new homes constructed per year.  With the annual rate of US\n housing starts currently below one million, we believe there is\n considerable room for additional expansion of the US market.  The\n addition of HMI further positions us to benefit from ...