Business
Hardwoods Announces Signing of Agreement to Purchase Frank Paxton Lumber Company
TRADING SYMBOL: Toronto Stock Exchange - HWD LANGLEY, BC, Sept. 12, 2011 /CNW/ - Hardwo...
About this update from Adentra Inc
[{"type":"text","content":"\n\n\n\n\n\nTRADING SYMBOL: Toronto Stock Exchange - HWD\n\n\nLANGLEY, BC, Sept. 12, 2011 /CNW/ - Hardwoods Distribution Inc.\n (\"Hardwoods\") announced today it has entered into an agreement to\n purchase the business operations (the \"Transaction\") of the Frank\n Paxton Lumber Company LLC (\"Paxton\").  Paxton is a leading\n remanufacturer and distributor of premium hardwood lumber, millwork and\n architectural sheet goods.  The Frank Paxton Lumber Company name is\n synonymous with quality, service and value and is recognized as a long\n term industry leader with roots going back to 1914.  Today, Paxton\n serves its customers from five branches located in Chicago, Illinois,\n Cincinnati, Ohio, Denver, Colorado, Kansas City, Missouri, and San\n Antonio, Texas.\n\n\nTransaction Highlights \n\n\nThe Transaction is structured as a purchase of assets.  The acquired\n assets will consist principally of trade accounts receivable,\n inventory, and equipment.  Hardwoods will not acquire any real estate\n as part of the Transaction, but will enter into lease agreements\n covering Paxton's five operating locations.\n\n\nThe purchase price of the acquired assets is estimated to be\n approximately US$13 million, but will be finalized based upon the value\n of the acquired assets on the closing date.\n\n\nHardwoods existing credit facilities will be utilized to finance the\n purchase price.  After financing the Transaction, Hardwoods expects it\n will still have sufficient unused borrowing availability under the\n credit facilities to continue to grow its' business.\n\n\nClosing of the Transaction is anticipated to occur on or about September\n 19, 2011, subject to satisfaction of final closing conditions by\n Hardwoods and Paxton.\n\n\n\"In the latter part of 2010 Hardwoods introduced an updated business\n strategy,\" said Lance Blanco, President and CEO of Hardwoods. \"Our\n board of directors and management team identified that while expense\n reduction had played a vital role in seeing us safely through the\n recent economic downturn, the time was now right to make a shift to\n strengthen our emphasis on market expansion.\"\n\n\n\"We identified three specific areas to focus our market expansion\n strategy.  First was end-market diversification, in particular doing\n more business in commercial and in...