Business
Richelieu further expands in North America with the closing of one acquisition in Canada and two agreements in principle in Canada and the U.S.
Richelieu further expands in North America with the closing of one acquisition in Canada and two agreements in principle in Canada and the U.S..
About this update from Richelieu Hardware Ltd
[{"type":"text","content":"\n\n\n\n\nRCH/TSX\n\nMONTREAL, Dec. 5 /CNW Telbec/ - Richelieu Hardware Ltd. announces three\nnew acquisitions, one of which closed today, December 5, 2005: Atlantic\nCountertops Limited (Dartmouth, N.S.). The two other transactions are at the\nagreement in principle stage and could close in January 2006, subsequent to\ndue diligence.\n\"These three acquisitions could not only bring additional sales of\napproximately $20 million on an annualized basis to Richelieu - but would also\nstrengthen our presence in certain Canadian markets, especially the Atlantic\nProvinces; would broaden our customer base in the retail superstore market,\nprimarily in Canada; and would enable us to penetrate a new market segment in\nthe United States, namely ergonomic office products. These acquisitions will\nbe financed by our cash flows from operations, and we expect them to\ncontribute to Richelieu's growth upon their closing,\" indicated Richard Lord,\nPresident and Chief Executive Officer of Richelieu.\n\nAcquisition of Atlantic Countertops Limited\n-------------------------------------------\n\nThe acquisition of the principal assets of Atlantic Countertops Limited\nadds sales of over $11 million on an annualized basis to Richelieu's revenues\nand contributes immediately to its earnings. Based in Dartmouth, Nova Scotia,\nthis specialist in the distribution of decorative and functional hardware and\nkitchen accessories operates two distribution centres: a main one in Dartmouth\nand another in Moncton, New Brunswick.\n\"We are pleased to have closed this transaction which is fully compatible\nwith our operations, our acquisition criteria and our growth objectives.\nAtlantic Countertops is a dynamic and profitable company that we already know\nwell as it sold certain of our products in the Atlantic Provinces, where it\nserves a solid customer base of kitchen and bathroom manufacturers. This\nacquisition therefore strengthens our business in these regional markets,\"\nadded Georges Albert, Vice-President, Development of Richelieu.\n\nTwo agreements in principle\n---------------------------\n\nIn addition to acquiring Atlantic Countertops Limited, Richelieu has\nsigned two agreements in principle to purchase two other distributors, one of\nwhich specializes in decorative hardware products for an extensive customer\nbase of retail superstore chains, ...