Doman Building Materials Group Ltd. has acquired Texas-based Hixson Lumber Sales. The Company acquired all of the assets of the Hixson Lumber Sales group of companies for approximately $375 million in cash, including inventory. Hixson is being acquired on a cash-free and debt-free basis, and the transaction is being funded from the Company’s existing cash on hand and revolving credit facilities.
Hixson is a leading wholesale and manufacturing company of lumber and treated lumber operating in the Central United States. Its operations are highly complementary to the Company’s existing U.S. West Coast operations without overlap.
“We are very excited with the addition of Hixson to the Doman group of companies. The Transaction is a great complement to our existing U.S. operations while further advancing our growth strategy and developing a leadership position in the central corridor of the U.S., in areas such as Texas that continue to have extremely strong growth activity,” said Amar Doman, Chairman and CEO. “We continue our disciplined approach in tracking and executing on accretive growth opportunities, further strengthening our financial performance, and enhancing shareholder value based on a fundamentally sound and sustainable growth plan. With the Transaction, our US footprint now extends from the West Coast and Hawaii across the mainland and into several high growth states in the middle of the US, we proudly operate 32 treating plants across our system, and our product offerings importantly include Southern Yellow Pine building materials.”
Founded in 1959 and headquartered in Dallas, Texas, Hixson is a value-added wholesale and manufacturing company in the lumber and treated lumber space, operating from 19 locations located in eight U.S. states. Hixson operates 19 lumber treating plants, five specialty sawmills and its own trucking fleet, and services and delivers products in approximately 25 states primarily in the central United States.
Doman is a leading North American distributor of building materials, and is Canada’s only fully integrated national distributor in the building materials and related products sector.