Hardwoods Distribution Inc. (HDI) announced on Tuesday that it has entered into an agreement to acquire substantially all of the assets, and assume certain liabilities, of Pacific Mutual Door Company (Pacific), a wholesale distributor of interior and exterior doors, custom millwork, and other ancillary building products.

For the trailing 12-month period which ended July 2019, Pacific’s revenues were $58 million. Pacific operates five facilities in Nashville, Tenn., Kansas City, Mo., Olathe and Osborne, Kan., and Albuquerque, N.M. In the 100 years that Pacific has been operating its customer base has grown to include general contractors, builders, distributors, and professional dealers.

“Pacific compliments HDI’s existing door and related millwork business and provides an entry point into the attractive Tennessee and Kansas markets, with minimal customer overlap and alignment of key supplier relationships. The Transaction is immediately accretive to shareholders,” said Rob Brown, HDI president and CEO.

The purchase price payable by HDI is $34.5 million and other considerations. Completion of the Transaction is subject to a number of conditions customary for a transaction of this nature. The Transaction is expected to close in October 2019.

“We have been successful with our acquisition strategy, having added over $600 million of annual sales in the last eight years. Our acquisitions pipeline remains very active at this time. We will continue to pursue additional transactions that complement our internal growth strategies,” said Brown.

News

Leave a Reply

Your email address will not be published. Required fields are marked *