Hardwoods Distribution Inc. has, through certain of its subsidiaries, entered into an agreement to purchase substantially all of the assets used in the business of Rugby Acquisition, LLC and its subsidiaries collectively doing business as “Rugby Architectural Building Products” (collectively, “Rugby”) for a total value of $107 million.
Following closing of the transaction, all of Rugby’s 560 employees are expected to remain in place. David Hughes will continue to serve as Rugby’s President and Drew Dickinson will remain as Rugby’s Chief Operating Officer to continue to lead Rugby’s business and execute upon its proven and successful business plan.
“This is a highly strategic business combination that brings together two successful, growth-oriented companies to create the number one distributor in our industry,” commented Rob Brown, Hardwoods’ President and CEO. “The transaction meets our objective of increasing our distribution capability in additional US markets, particularly in the Eastern US. It also aligns with our ‘strengthen commercial’ strategy by deepening our presence in the attractive commercial market. Rugby’s business model is very similar to our own and its product focus and customer base are highly complementary. Together, we are creating a larger, more efficient platform for distributing our respective product lines.”
Rugby is a leading US wholesale distributor of non-structural architectural grade building products to customers that supply end-products to the commercial market.
Hardwoods is one of North America’s largest distributors of high-grade hardwood lumber, sheet goods and architectural millwork to the cabinet, moulding, millwork, furniture and specialty wood products industries.