CanWel Building Materials Group Ltd. ("CanWel") has agreed in principle to acquire the business of Total Forest Industries, a lumber pressure treating plant in Hagersville, Ontario, (the "Plant") from a privately held arm's length vendor.
The transaction remains subject to the execution of a definitive purchase agreement and is expected to be completed on September 6, 2016. The purchase price for the Plant will be paid in cash from the Company's existing credit facilities.
Total Forest Industries is located in the Greater Toronto area, serves Southern Ontario and will complement CanWel's treating facilities in Cambridge and Combermere, ON, deepening CanWel's reach and capacity to service its customers. Upon closing of this acquisition, CanWel will now own ten treating plants in North America.
"The addition of these newly acquired assets to our existing solid wood pressure treating platform will further strengthen our vertically integrated business model, the depth of offering of our suite of services, and is expected to be accretive to earnings as early as the current fiscal year," noted Amar Doman, Chairman and CEO of CanWel.
CanWel is Canada's only fully integrated national distributor in the building materials and related products sector.
