Vancouver, BC—Doman Building Materials Group Ltd. (“Doman” or the “Company”), with its head office here, recently announced that it has acquired Texas-based Hixson Lumber Sales. The Company acquired all of the assets of the Hixson Lumber Sales group of companies (“Hixson”) for approximately US$375 million in cash, including inventory (the “Transaction”). Hixson is being acquired on a cash-free and debt-free basis, and the Transaction is being funded from the Company’s existing cash on hand and revolving credit facilities.
Hixson is a leading family-owned lumber and treated wood supplier operating in the Central United States with 19 lumber treating plants, five specialty sawmills and a captive trucking fleet.
This highly strategic acquisition complements Doman’s existing U.S. West Coast operations with immediate scale in some of the most attractive and fastest growing regions across the United States, according to the Company.
The Transaction is expected to be more than 55 percent accretive on both an earnings per share and free cash flow per share basis, using metrics for Hixson that reflect more normalized market and industry conditions.
CanWel Building Materials Group Ltd. recently announced that it has filed with the Toronto Stock Exchange a notice of name-change to Doman Building Materials Group Ltd.
For more information, go to www.canwel.com.
