Feb 1 2007
Patrick Industries, Inc. today announced it has acquired the net assets and business of Phoenix-based American Hardwoods, Inc., a supplier of hardwood products to the industrial markets, for cash financed with borrowings under Patrick's credit facility.
American Hardwoods supplies industrial wood products, including hardwood plywood, hardwood lumber, thermofused melamine and particleboard, to the kitchen cabinet, office furniture, commercial fixture, home furniture and garage cabinet industries. American Hardwoods also supplies roll lamination products which directly complement Patrick's current lamination product lines.
"We expect the acquisition of American Hardwoods to be immediately accretive to our earnings," said Paul E. Hassler, President and CEO of Patrick Industries. "American Hardwoods fits within the focus of our strategic plan by adding products which complement our existing product lines while further diversifying our customer base into the industrial markets.
"American Hardwoods reported approximately $18 million in revenue last year with positive earnings trends. Our focus at American Hardwoods is to continue to develop strong customer relationships with current and future customers and on driving market penetration in a growing economic region. We plan on retaining the current staff and facilities at American Hardwoods."