Hardwoods Distribution Inc. (“HDI”) has, through its subsidiary Rugby Holdings LLC, purchased substantially all of the assets and assumed certain liabilities of River City Millwork Inc. (“River”).
River, located in Rockford Illinois, is a wholesale distributor of interior and exterior doors, custom millwork, and other ancillary products. River’s estimated annual sales are $14 million and they will operate under the Rugby brand name going forward.
“Over the last several years we have been strategically growing our presence in doors and related millwork distribution. The performance of this product category has been one of our strongest year-to-date and now represents over 15% of consolidated revenues. We expect this product category to benefit from the increase in U.S. residential home building and repair and remodel construction,” commented Rob Brown, HDI’s President and CEO.
The transaction purchase price of $4.2 million (subject to final working capital adjustments) was financed by a draw on the company’s existing US credit facility.
HDI is North America’s largest distributor of architectural grade building products to the residential and commercial construction markets.
