Business
Hardwoods Completes Acquisition of Rugby Architectural Building Products and Confirms 14% Dividend Increase
Hardwoods Completes Acquisition of Rugby Architectural Building Products and Confirms 14% ...
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[{"type":"text","content":"\n\n\n\nHardwoods Completes Acquisition of Rugby Architectural Building Products and Confirms 14% Dividend Increase\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nHardwoods Completes Acquisition of Rugby Architectural Building Products and Confirms 14% Dividend Increase\nCanada NewsWire\nLANGLEY, BC, July 18, 2016\n\n\n\nLANGLEY, BC, July 18, 2016 /CNW/ - Hardwoods Distribution Inc. (\"Hardwoods\" or the \"Company\") (TSX: HWD) today announced the completion of its previously announced acquisition (the \"Acquisition\") of substantially all of the assets used in the business of Rugby Acquisition, LLC and its subsidiaries, collectively doing business as \"Rugby Architectural Building Products\" (collectively, \"Rugby\"). The Acquisition was completed for a purchase price of US$107 million (the \"Purchase Price\") plus up to another US$13 million based on future performance. The effective date of closing of the Acquisition was July 15, 2016.\n\n\"This is a highly strategic business combination,\" said Robert Brown, President and Chief Executive Officer of Hardwoods. \"With the completion of the Acquisition, Hardwoods is now North America's largest distributor of hardwood lumber, panel and interior architectural building materials, with a coast-to-coast US presence and significantly increased access to commercial end-markets\".\n\nHardwoods satisfied the Purchase Price for the Acquisition using approximately US$43.0 million of the net proceeds from its recently completed bought deal offering of 3,966,350 subscription receipts, together with approximately US$5.5 million from its existing credit facility and US$51.5 million of new senior debt provided by a U.S. bank under the Credit Facility (as defined below) and the issuance of 563,542 Common Shares of the Company.\n\nIn connection with the closing of the Acquisition, Hardwoods completed a senior credit facility of US$125 million (the \"Credit Facility\"). The Credit Facility was used to refinance the outstanding debt of certain of the Company's U.S. subsidiaries.  In addition, approximately US$51.5 million of thi...