Hardwoods Distribution Inc. has, through its subsidiary Rugby Holdings LLC, purchased substantially all of the assets and assumed certain liabilities of Downes & Reader Hardwood Company Inc. ("D&R") for a total value of $6 million.
D&R is a distributor of hardwood lumber with four locations in the US Northeast and estimated annual sales of $25 million. D&R services both the wholesale and retail customer segments, adding over 2,400 new customers for the Company.
The D&R locations will operate as part of the Rugby brand. The Company does not expect to record any goodwill or intangible assets related to the transaction.
The transaction purchase price was financed by a draw on the Company's existing US credit facility.
Hardwoods is North America's largest distributor of architectural grade building products to the residential and commercial construction markets.
