Doman Building Materials Group Ltd. Completes Acquisition of Southeast Forest Products Treated Assets

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VANCOUVER, British Columbia, March 01, 2024 (GLOBE NEWSWIRE) -- Doman Building Materials Group Ltd. (“Doman” or “the Company”) (TSX:DBM) today announced that a wholly owned subsidiary in the United States doing business as Doman Lumber has acquired two lumber pressure treating plants, related equipment and the business (the “Plants”) formerly owned by Southeast Forest Products Treated, Ltd. in Richmond, Indiana and near Birmingham, Alabama (the “Acquisition”).

The Plants are strategically located near existing Doman Lumber facilities, significantly expanding, and complementing our suite of central US offerings and newly accessing additional southern and eastern US markets, with minimal geographical overlap. The Acquisition adds approximately 300 million board feet of annual treating capacity to the Doman Lumber platform.

“We are very excited with this Acquisition. The Plants complement our central US operations and strengthen our footprint by introducing coverage in eight new states, including the strong southeastern US markets and select Eastern states. This strategic acquisition exemplifies our strategy of adding scale and volume to our US operations in pressure treated lumber and specialty wood products, headquartered in Dallas,” said Amar Doman, Chairman and CEO of Doman. “The Acquisition is very much in-line with our growth strategy and consistent with our view of value for what we are purchasing, and value creation for shareholders as we look forward to working on our integration efforts as we have done with previous opportunities. We are very excited to welcome our new employees to the Doman Group of Companies.”

The purchase price for the Acquisition was paid in cash and fully funded by Doman’s cash-on-hand. No shares will be issued in connection with the purchase. The Company expects the Acquisition to be accretive to earnings in the current fiscal year and in-line with its vision and overall growth strategy.

About Doman Building Materials Group Ltd.

Founded in 1989, Doman is headquartered in Vancouver, British Columbia, and trades on the Toronto Stock Exchange under the symbol DBM.

As Canada’s only fully integrated national distributor in the building materials and related products sector, Doman operates several distinct divisions with multiple treating plants, planing and specialty facilities and distribution centres coast-to-coast in all major cities across Canada and select locations across the United States.