RCH/TSX
MONTREAL, March 7 /CNW Telbec/ - Richelieu Hardware Ltd. announces that it has closed the acquisition of the operating assets of Village Square Cabinet Supply. Based in Nashville, Tennessee, this distributor of decorative and functional hardware, kitchen accessories and related products mainly serves a customer base of kitchen cabinet manufacturers. This acquisition adds annual sales of about US$7 million to Richelieu's revenues and immediately contributes to its earnings.
"We are pleased to close this acquisition, which is most compatible with our business and fully consistent with our criteria. Integrating these new operations will bring our American network to 15 distribution centres and will enable us to penetrate a new market close to regions in which we are already present, which will favour selling synergies with our existing operations in the United States," indicated Richard Lord, President and Chief Executive Officer of Richelieu.
Profile as at March 7, 2007
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Richelieu Hardware Ltd. is Canada's leading distributor, importer and manufacturer of specialty hardware and complementary products. The Company also ranks among the top players in its specialty in North America. Its products are targeted to an extensive customer base of kitchen and bathroom cabinet, furniture, and window and door manufacturers plus the residential and commercial woodworking industry, as well as a large customer base of hardware retailers, including renovation superstores. Richelieu offers customers a broad mix of high-end products sourced from manufacturers around the world. Its product selection consists of close to 50,000 different items targeted to a base of over 37,000 customers who are served by 46 centres in North America - 29 distribution centres across Canada, 15 in the United States and two manufacturing plants in Canada, specifically Cedan Industries Inc. which specializes in the manufacture of a wide variety of veneer sheets and edgebanding products, and Menuiserie des Pins Ltee which manufactures components for the window and door industry, a broad selection of mouldings, and various types of tackboards and whiteboards.
This press release contains forward-looking statements based on the Company's current outlook. This information involves certain risks, uncertainties and assumptions. Actual results and events could differ materially from those indicated or underlying these statements.