RCH/TSX MONTREAL, Dec. 5 /CNW Telbec/ - Richelieu Hardware Ltd. announces three new acquisitions, one of which closed today, December 5, 2005: Atlantic Countertops Limited (Dartmouth, N.S.). The two other transactions are at the agreement in principle stage and could close in January 2006, subsequent to due diligence. "These three acquisitions could not only bring additional sales of approximately $20 million on an annualized basis to Richelieu - but would also strengthen our presence in certain Canadian markets, especially the Atlantic Provinces; would broaden our customer base in the retail superstore market, primarily in Canada; and would enable us to penetrate a new market segment in the United States, namely ergonomic office products. These acquisitions will be financed by our cash flows from operations, and we expect them to contribute to Richelieu's growth upon their closing," indicated Richard Lord, President and Chief Executive Officer of Richelieu. Acquisition of Atlantic Countertops Limited ------------------------------------------- The acquisition of the principal assets of Atlantic Countertops Limited adds sales of over $11 million on an annualized basis to Richelieu's revenues and contributes immediately to its earnings. Based in Dartmouth, Nova Scotia, this specialist in the distribution of decorative and functional hardware and kitchen accessories operates two distribution centres: a main one in Dartmouth and another in Moncton, New Brunswick. "We are pleased to have closed this transaction which is fully compatible with our operations, our acquisition criteria and our growth objectives. Atlantic Countertops is a dynamic and profitable company that we already know well as it sold certain of our products in the Atlantic Provinces, where it serves a solid customer base of kitchen and bathroom manufacturers. This acquisition therefore strengthens our business in these regional markets," added Georges Albert, Vice-President, Development of Richelieu. Two agreements in principle --------------------------- In addition to acquiring Atlantic Countertops Limited, Richelieu has signed two agreements in principle to purchase two other distributors, one of which specializes in decorative hardware products for an extensive customer base of retail superstore chains, primarily in Canada, while the other specializes in ergonomic office products in the United States. Profile ------- 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 more than 40,000 different items targeted to a base of over 36,000 customers who are served by 37 distribution centres in North America - nine in the United States and 28 in Canada including two manufacturing plants. The Company also specializes in the manufacture of a wide variety of veneer sheets and edgebanding products through its subsidiary Cedan Industries Inc., of components for the window and door industry and of mouldings through Menuiserie des Pins LtDee, and of various types of panels, 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.
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