Richelieu acquires E. Kinast Distributors, Inc. ("EKD") in Illinois, U.S.
Fifth acquisition since the beginning of 2010 -------------------------------------------------------------------------TSX: RCH
MONTREAL, Sept. 28 /CNW Telbec/ - Richelieu Hardware Ltd. announces the closing of the acquisition of the net assets of E. Kinast Distributors, Inc., located in Hannover Park, in the Chicago region, Illinois (U.S.). EKD is a distributor of hardware, laminates, finishing and complementary products targeted to a customer base of kitchen cabinet makers and the residential and commercial woodworking industry.
Through this acquisition, Richelieu establishes its presence in the Greater Chicago Area, increases its sales by some $10 million annually and adds a new distribution centre to its U.S. network, which now comprises 22 centres. EKD's activities are fully compatible with Richelieu's operations and acquisition criteria.
Since the beginning of 2010, Richelieu has opened one new centre in North Carolina and closed five acquisitions, including EKD. Another acquisition project (announced in July 2010) is currently undergoing due diligence and negotiation of the acquisition agreement to the satisfaction of both parties. With these five acquisitions and the transaction in progress, Richelieu is expected to increase its sales by some $70 million annually.
On September 30, 2010, Richelieu will announce its results for the third quarter ended August 31, 2010.
Profile as at September 28, 2010 --------------------------------
Richelieu is a leading North American distributor, importer and manufacturer of specialty hardware and complementary products. Its products are targeted to an extensive customer base of kitchen and bathroom cabinet, furniture, and window and door manufacturers plus the residential and commercial woodworking industry, as well as a large customer base of hardware retailers, including renovation superstores. Richelieu offers customers a broad mix of high-end products sourced from manufacturers around the world. Its product selection consists of more than 70,000 different items targeted to a base of over 40,000 customers who are served by 54 centres in North America - 30 distribution centres across Canada, 22 in the United States and two manufacturing plants in Canada, specifically Cedan Industries Inc. which specializes in the manufacture of a wide variety of veneer sheets and edgebanding products, and Menuiserie des Pins Ltée which manufactures components for the window and door industry and a broad selection of decorative mouldings.
Certain statements contained in this press release may constitute forward-looking statements within the meaning of securities legislation. Richelieu's management would like to point out that, by their very nature, forward-looking statements involve a number of risks and uncertainties such that the Company's actual and future results could differ materially from those indicated. There can be no assurance as to the materialization of the results, performance or achievements as expressed in or underlying the forward-looking statements. Unless required to do so pursuant to applicable securities legislation, Richelieu's management assumes no obligation as to the updating or revision of the forward-looking statements as a result of new information, future events or other changes.
For further information: Richard Lord, President and Chief Executive Officer; Alain Giasson, Vice-President and Chief Financial Officer, Tel: (514) 336-4144; www.richelieu.com
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