Hardwoods Distribution Inc. (“HDI”) has, through its subsidiary, entered into an agreement to purchase Novo Building Products Holdings, LLC from an affiliate of Blue Wolf Capital Partners for a total price of $303 million.
Novo is being acquired on a cash-free and debt-free basis other than the assumption of an estimated $40 million in lease obligations. The acquisition will be financed by a new credit facility.
“We are very excited to be adding Novo to HDI. This highly strategic acquisition provides a symbiotic fit with our existing operations as a distributor of high value, specialty, non-commodity building materials with a national footprint and leading market position,” commented Rob Brown, HDI’s President and CEO. “The acquisition advances our strategy of growing market share and expanding our product offering and customer channel participation in the architectural building products industry. In addition, Novo deepens our presence in the attractive residential and repair and remodel markets where we expect a multi-year runway for growth.”
Completion of the acquisition is subject to a number of conditions, including U.S. antitrust approval, as well as other conditions customary for a transaction of this nature. The acquisition is expected to close in late July or early August 2021.
Novo is a leading U.S. distributor of architectural grade building products to home centers and to home builder distribution yards across the U.S.
HDI is currently one of North America’s largest distributors of non-structural architectural grade building products to the residential, repair and remodel, and commercial construction industries.
