HDI Announces Acquisition of Mid-Am Building SupplyFebruary 15th, 2022 by Editor
Hardwoods Distribution Inc. has announced that one of its wholly owned subsidiaries has entered into an agreement to acquire substantially all of the assets and assume certain working capital liabilities of Mid-Am Building Supply, Inc. (Mid-Am). Mid-Am’s management team will continue to lead Mid-AM and HDI will welcome Mid-Am’s 364 employees.
Founded in 1967, Mid-Am is a wholesale distributor of building products to customers in the U.S. Midwest. It has customer relationships reaching more than 1,600 ship-to customer locations and generates annual sales of more than $270 million (US).
Mid-Am focuses on homebuilder distribution yards, providing customers with an extensive portfolio of products and services including doors, millwork, and other diversified building materials. With the transaction, Mid-Am brings new local presence in the Midwest to HDI’s existing network of 83 distribution centers. Mid-Am operates five distribution centers with 650,000-sq.-ft of warehouse space serving 10 states, and located in: Moberly, Mo; Chillicothe, Mo.; Spring Hill, Kan.; Mount Pleasant, Iowa; and Centralia, Ill. Under HDI, Mid-Am will continue to operate under its current name and will join HDI’s other operating brands Rugby Architectural Building Products, Hardwoods Specialty Products, Novo Building Products, and Frank Paxton Lumber.
“We are very pleased to welcome Mid-Am’s capabilities to HDI, which we believe are complementary to our current operations,” said Rob Brown, HDI’s President and CEO. “This acquisition is a natural geographic extension from our current locations, providing access to customers and markets in the U.S. Midwest that we do not reach today. Mid-Am comes with an experienced team, established customer relationships and a portfolio of specialty and associated products that complement our existing product mix.”
According to HDI, the acquisition of Mid-Am, combined with the HDI’s purchase of Novo Building Products (Novo) in August 2021, has repositioned the company to meaningfully participate in the Pro Dealer / home center customer channel, which represents a substantial addressable market opportunity for HDI to capitalize on its deep expertise in architectural building products.
“With today’s announced addition of Mid-Am, plus the previous acquisition of Novo, we have achieved additional diversification for our business,” continued Brown. “Combined, we have acquired pro forma annual sales of $950 million (US) in the Pro Dealer and home center customer channels in the last six months. Looking ahead, approximately 60% of our sales mix will be focused on industrial customers, and 40% on Pro Dealer / home center. This customer channel diversity, combined with our national footprint and balanced product portfolio, positions HDI as a one-stop-solution for its customers.”
HDI intends to remain active with additional acquisition opportunities. MidAm is HDI’s eleventh acquisition in the last five years, on a pro forma basis adding over US$1.4 billion in annual revenues during this time period.
Completion of the acquisition is subject to a number of conditions customary for a transaction of this nature. The acquisition is expected to close in February 2022.