HDI Completes Acquisition of Novo Building Products Holdings
Hardwoods Distribution Inc. completed its previously announced acquisition of the equity interests in Novo Building Products Holdings LLC. As a result of the acquisition, Novo will become a key offering in HDI’s distribution portfolio, according to a statement.
“This is a transformative acquisition for the company,” says Rob Brown, president and CEO 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 work collaboratively to provide mouldings, millwork, stair parts, doors and specialty building products to home centers and to home builder distribution yards throughout the U.S. 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 July 30, 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 10 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.
