HMI is a fully integrated producer of high quality hardwood lumber from its sawmill and kiln drying operations located on 23 acres in Clinton, Michigan. HMI sells hardwood lumber to customers that manufacture cabinets, flooring, furniture, mouldings, doors, windows and other custom millwork products.
"With this accretive Transaction, Hardwoods continues to grow its business with an attractively priced acquisition that is well-timed to the ongoing recovery in the US housing market," said Lance Blanco, President and CEO of Hardwoods. "Forecasters continue to predict a multi-year strengthening trend in US residential construction, suggesting a sustainable replacement level for US housing of 1.3 to 1.5 million new homes constructed per year. With the annual rate of US housing starts currently below one million, we believe there is considerable room for additional expansion of the US market. The addition of HMI further positions us to benefit from the expected recovery," said Mr. Blanco.
"HMI is our third completed acquisition in the past two and a half years, and is expected to bring approximately $33 million in additional revenues per year. When combined with our previous purchases of a lumber importer in North Carolina in May 2013, and the Frank Paxton Lumber Company in September 2011, we have added an estimated $100 million in additional annual sales from acquired businesses to complement our organic market growth opportunities."
Hardwoods Distribution Inc. is one of North America's largest wholesale distributors of hardwood lumber and related sheet good products, operating a network of 32 distribution centres in the US and Canada.