Taiga Building Products Ltd. has entered, through a wholly owned subsidiary, into a share purchase agreement (the "SPA") with Exterior Wood, Inc. and its shareholders, whereby Taiga will acquire all of the issued and outstanding common shares of Exterior Wood for a purchase price of $42 million subject to certain adjustments at closing of the acquisition in respect of working capital, cash and certain outstanding indebtedness. The acquisition has been structured to close on a cash free debt free basis.
The acquisition will expand Taiga's existing wood treatment operations at three facilities in Canada, with additional penetration into the United States market.
Taiga expects to finance the purchase price primarily using its senior credit facility.
Exterior Wood has been operating a wood treatment facility and distribution centre in Washougal, Washington since 1977, and services retail building supply centers throughout the western United States and Canada with a wide array of pressure treated products.
