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HDI Announces US$303 Million Acquisition of Novo Building Products Holdings, LLC and New Credit Facility
HDI Announces US$303 Million Acquisition of Novo Building Products Holdings, LLC and New ...
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[{"type":"text","content":"\n \n \n \n HDI Announces US$303 Million Acquisition of Novo Building Products Holdings, LLC and New Credit Facility\n \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.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n Expected to be over 30% accretive to earnings per share on a pro forma basis\n \n \n \n \n \n Acquisition provides HDI turnkey entry into the home center and home builder distribution customer channels, with high value architectural building products, established brands, a national footprint, and leading market positions\n \n \n \n \n \n LANGLEY, BC\n \n ,\n \n June 23, 2021\n \n /CNW/ - Hardwoods Distribution Inc. (\"\n \n HDI\n \n \" or the \"\n \n Company\n \n \") (TSX: HDI) today announced that it has, through its subsidiary, entered into an agreement (the \"\n \n Equity Purchase Agreement\n \n \") to purchase Novo Building Products Holdings, LLC  (\"\n \n Novo\n \n \") from an affiliate of Blue Wolf Capital Partners for a total price of\n \n US$303 million\n \n (the \"\n \n Purchase Price\n \n \") (the \"\n \n Acquisition\n \n \"). Novo is being acquired on a cash-free and debt-free basis other than the assumption of an estimated\n \n US$40 million\n \n in lease obligations. The Acquisition will be financed by a new credit facility.\n \n \n Novo is a leading U.S. distributor of architectural grade building products to home centers and to home builder distribution yards (\"\n \n Pro Dealers\n \n \") across the U.S.. Novo's product suite includes moulding and millwork, stair systems, decorative boards, and doors which are complementary to the Company's own offering.\n \n \n \"We are very excited to be adding Novo to HDI. This highly strategic acquisition provides a symbiotic fit with our existing operations as a distributor of high value, specialty, non-commodity building materials with a national footprint and leading market position,\" commented\n \n Rob Brown\n \n , HDI's President and CEO. \"The acquisition advances our strategy of growing market share and expanding our product offering and customer channel par...