Business
Hardwoods Announces Acquisition of Import Lumber Business and Amendment to US Credit Facility
TRADING SYMBOL: Toronto Stock Exchange - HWD LANGLEY, BC, June 3, 2013 /CNW/ - Ha...
About this update from Adentra Inc
[{"type":"text","content":"\n\n\nTRADING SYMBOL: Toronto Stock Exchange - HWD\n\n\nLANGLEY, BC, June 3, 2013 /CNW/ - Hardwoods Distribution Inc.\n (\"Hardwoods\") announced today the acquisition of certain assets (the\n \"Transaction\") associated with the business known as Olam Wood Products\n (\"OWP\" or the \"Business\") conducted in Leland, North Carolina.  The\n Business is an importer of high quality tropical lumber and decking\n material from Africa and South America for resale to industrial\n customers and wholesale distributors located in North America. \n Hardwoods also amended its US credit facility concurrently with closing\n the Transaction.\n\n\nTransaction Highlights \n\n\nThe Transaction is structured as an asset acquisition with a purchase\n price of US$2.8 million.  Closing date for the Transaction was May 31,\n 2013.\n\nThe acquired assets consist of inventory and some equipment.  Hardwoods\n also hired the employees of OWP, and assumed the existing lease of the\n Business comprising 40,000 square feet of warehouse and office space in\n Leland, NC.\n\nNo other liabilities or contractual obligations were assumed by\n Hardwoods as part of the Transaction.\n\nHardwoods existing credit facilities were utilized to finance the\n purchase price.  Hardwoods US operating subsidiary amended its credit\n facility to increase maximum borrowings available under the facility\n from US$45 million to US$50 million.\n\n\n\"The acquisition of the operating assets of OWP is an excellent fit with\n our growth strategy,\" said Lance Blanco, President and CEO of\n Hardwoods.  \"The acquired Business builds upon Hardwoods\n well-established strength as an importer of hardwood products by\n extending our direct sourcing capabilities to tropical lumber products\n from Africa and South America.  The acquisition adds more than $4\n million annually to Hardwoods sales, is expected to contribute to\n current year earnings, and gives us a presence on the US east coast. \n With an improving US housing market we believe this is a well-timed and\n well-priced addition to our US branch network,\" said Mr. Blanco.\n\n\nAbout Hardwoods Distribution Inc.\n\n\nHardwoods Distribution Inc. (TSX:  HWD) is one of North America's\n largest wholesale distributors of hardwood lumber and related sheet\n good products, operating a network...