HDI Completes Acquisition of Novo Building Products Holdings, LLC
Hardwoods Distribution Inc. (“HDI” or the “Company”) announced the completion of its previously announced acquisition (the “Acquisition”) of the equity interests in Novo Building Products Holdings, LLC (“Novo”).
As a result of the acquisition, Novo will become a key offering in HDI’s distribution portfolio.
“This is a transformative acquisition for the Company,” said Rob Brown, President and Chief Executive Officer of HDI. “Novo significantly broadens our addressable market, providing turnkey access into the home center and home builder distribution customer segments. We believe the combined scale and sophistication of HDI and Novo creates a national platform to provide additional solutions to our customers, and allows us to capitalize on the market share opportunity available. The multi-year outlook for our products and the end markets we participate in is very attractive, with strong demand driving new residential, repair and remodel and commercial building expenditures. Millennials represent the largest demographic segment of the population and are now entering peak home buying years, complemented by historically low interest rates and rising home equity levels that support spending. We see significant growth opportunities ahead as we continue to build HDI as a world class distributor of architectural building products for the benefit of our customers, vendor partners, employees and shareholders.”
Founded in 1946, Novo Building Products comprises a family of four companies: Empire Moulding and Millwork, Southwest Moulding and Millwork, LJ Smith Stair Systems and Ornamental Decorative Millwork. Collectively these four brands make Novo an industry leading manufacturer and distributor, working collaboratively to provide mouldings, millwork, stair parts, doors and specialty building products to home centers and to home builder distribution yards (Pro Dealers) throughout the United States and some parts of Canada and Mexico. Novo has annual sales of over US$640 million, servicing 230 major metro markets across 30 states from its 14 strategically located facilities.
The transaction had an effective closing date of Friday, July 30th, 2021. Following the acquisition, Novo Building Product’s 14 facilities will continue to operate under the Novo brand and all members of the staff will stay on with the company.
This addition is part of HDI’s growth-through-acquisition strategy, having now completed thirteen acquisitions in the last ten years that has added 55 distribution and fabrication facilities to its network. A network that now totals to 84 facilities with 6.2 million feet of distribution and fabricating space, and 2,600 employees and services bringing value to 85,000 customers. HDI generates anticipated revenues of US$1.6 billion annually.
About Hardwoods Distribution Inc. (HDI)
HDI is one of North America’s largest distributors of architectural grade building and millwork products to the residential and commercial construction industries. The Company currently operates a network in North American of 84 distribution facilities utilizing four industry leading distribution brands: Novo Building Products; Hardwoods Specialty Products; the Frank Paxton Lumber Company; and Rugby Architectural Building Products.
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Source: Hardwoods Distribution Inc.