Quality Hardwoods Ltd. manufactures, sells and distributes Hardwood lumber products in Ontario and the US. Average consolidated sales of the acquired company for the past three years averaged $13.7 million.
The purchase price was $5.7 million including net assets of $4.1 million at book value, subject to post-closing adjustments. Goodfellow has financed the acquisition through its existing revolving credit facility.
"The acquisition of Quality Hardwoods will strengthen Goodfellow's hardwood market position in Canada and the USA. We expect to improve the coverage of Quality Hardwood customer needs with a complement of Goodfellow products. Quality Hardwoods will continue to operate as a separate entity delivering the quality of product and service they are known for said Denis Fraser, President and CEO of Goodfellow Inc. We expect this transaction to be immediately accretive to earnings and are happy to welcome the Quality Hardwoods team in the Goodfellow community".
Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products.
