pcJ News Briefs – CanWel Building Materials Group Ltd. (TSX: CWX) has completed previously announced acquisition of Honsador Building Products group of companies for US $82.3 million.
Honsador Building Products had been a portfolio company of Grey Mountain Partners since December 2014.
Founded in 1935, Honsador is a leading distributor of building products and electrical supplies and the largest producer of pressure-treated wood in Hawaii, with 14 facilities across the Big Island, Maui, Oahu and Kauai serving the residential, commercial and military markets.
photo credit: Honsador Building Products
News Release
CANWEL BUILDING MATERIALS COMPLETES ACQUISITION OF LEADING HAWAIIAN BUILDING PRODUCTS COMPANY
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
VANCOUVER, CANADA – October 2, 2017 – CanWel Building Materials Group Ltd. (“CanWel” or the “Company”) (TSX:CWX) is pleased to announce it has completed its previously announced acquisition (the “Transaction”) of the Honsador Building Products group of companies (“Honsador”) for USD$82.3 million1. Concurrent with the closing of the Transaction, 9,832,500 subscription receipts of the Company that were issued pursuant to the recently completed private placement (the “Private Placement”) were converted into an aggregate of 9,832,500 common shares of the Company in accordance with their terms. For more information on the Private Placement, please refer to the Company’s news release dated September 26, 2017.
The Transaction has resulted in Honsador becoming an indirect wholly-owned subsidiary of CanWel and Honsador’s operations have been combined with CanWel’s well-established and growing North American platform. The Transaction was funded through a combination of the proceeds from the Private Placement and CanWel’s existing revolving credit facilities, resulting in CanWel maintaining a constant leverage profile.
“I am very pleased with our ability to identify and close on such a great acquisition based on the strength of the business, and the natural fit which now further strengthens and expands our presence on the west coast of the US,” said Amar S. Doman. “I would like to personally welcome our new team members at Honsador to CanWel. We are very excited and look forward to working together in demonstrating the strength of a combined business in the months to come.”
Founded in 1935, Honsador is a leading distributor of building products and electrical supplies and the largest producer of pressure-treated wood in Hawaii, with 14 facilities across the Big Island, Maui, Oahu and Kauai serving the residential, commercial and military markets.
Advisors and Counsel
GMP Securities L.P. acted as financial advisor to CanWel and a team comprised of Dorsey & Whitney LLP, Carlsmith Ball LLP and Goodmans LLP acted as its legal advisors.
About CanWel Building Materials
Founded in 1989, CanWel is headquartered in Vancouver, British Columbia and trades on the Toronto Stock Exchange under the symbol CWX and is Canada’s only fully integrated national distributor in the building materials and related products sector. CanWel operates multiple treating plant and planing facilities in Canada and the United States, and operates distribution centres coast-to-coast in all major cities and strategic locations across Canada and near San Francisco and Los Angeles, California. CanWel distributes a wide range of building materials, lumber and renovation products. In addition, through its CanWel Fibre division, CanWel operates a vertically integrated forest products company based in Western Canada, operating from British Columbia to
Saskatchewan, also servicing the US Pacific Northwest. CanWel owns approximately 136,000 acres of private timberlands, strategic Crown licenses and tenures, log harvesting and trucking operations, several post and pole peeling facilities and two pressure-treated specialty wood production plants and a specialty saw mill.
For further information regarding CanWel please contact:
Ali Mahdavi
Investor Relations
416-962-3300
ali.mahdavi@canwel.com