Hardwoods Distribution Inc. (HDI) announced that it has, through its subsidiary Hardwoods Specialty Products US LP (Hardwoods), purchased substantially all of the assets and assumed certain liabilities of Diamond Hardwoods (Diamond).
Diamond is a wholesale distributor with locations in Fresno and Bakersfield, Calif. Diamond distributes architectural building products to contractors, industrial manufacturers, and retail customers. Diamond will operate under the Hardwoods brand name going forward.
“I’m pleased to announce the acquisition of Diamond Hardwoods, the addition of Diamond complements our existing Northern California operations and provides additional size and scale in an attractive growth market,” comments Rob Brown, HDI president and chief executive officer. “The transaction broadens our service capabilities in Northern California, while adding bench strength to our team and a customer set with minimal overlap. Diamond opened its doors for business today under the Hardwoods brand name and will operate as part of our Hardwoods Northern California Group led by General Manager Mike Couture. Mr. Couture advises that ‘We appreciate the opportunity to continue to provide outstanding service to Diamonds loyal customer base, and provide them with a wider range of products and vendor relationships going forward.'”
HDI has been successful with its acquisition strategy adding $690 million in annualized sales and 45 new branch locations since 2011. The acquisitions pipeline remains active and, with our continued balance sheet strength, we intend to pursue additional transactions that complement our internal growth strategies.
The transaction purchase price was financed by a draw on the company’s existing U.S. credit facility.