U.S. Lumber Group, one of America's biggest distributors of building products, announced today it will acquire Canada's Alexandria Moulding, one of North America's leading firms in that category. Terms weren't disclosed.
After the deal closes in early October, Alexandria Moulding's management team will continue to run the operation from its headquarters in Alexandria, Ontario, and the company will keep its name.
"This acquisition advances our growth strategy by expanding our geographic presence and product mix, and adds an exciting new set of capabilities to our company," U.S. Lumber CEO Jeff McLendon said in a news release. "We're particularly pleased that combining these complementary businesses will enhance the value proposition we collectively offer our trading partners."
Duluth-Ga.-based U.S. Lumber's service area stretches down the Atlantic Coast and then west into adjacent states, most recently in the Midwest. It provides more than 7,000 customers in 33 states with all sorts of commodity and specialty lumber as well as molding, railing, and composite decking. Alexandria Moulding provides molding and accessories to LBM dealers and other customers in Canada and the northern U.S.; its distribution centers are in Ontario, Pennsylvania, northern Indiana, and Washington state.
Alexandria Moulding President Andre Cholette said in the press release that U.S. Lumber "is a perfect match for Alexandria Moulding’s strong culture. Becoming a part of U.S. Lumber will allow us to enhance our product and service offerings as we continue to provide growth opportunities for our customers, suppliers and employees.”
Today's announcement continues a growth pattern and a philosophy of letting its acquisitions operate separately under their own names. In April 2016, U.S. Lumber acquired Boston Cedar. In March 2017, the private equity firm Madison Dearborn Partners (MDP) invested heavily in the company and U.S. Lumber launched an expansion strategy. In September 2017, U.S. Lumber Group acquired NILCO, enabling it to expand into the Midwest.