LANGLEY, B.C. – Hardwoods Distribution Inc. (HDI) has entered into an agreement to acquire Mid-Am Building Supply Inc.
Founded in 1967, Mid-Am based in Moberly, Mo., is a wholesale distributor of building products to customers in the Midwest. The company focuses on home builder distribution yards, providing professionals with an extensive portfolio of products and services including doors, millwork, and other diversified building materials. It has more than 1,600 ship-to customer locations and generates annual sales of more than $270 million.
According to a company statement, 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 square feet of warehouse space serving 10 states, and located in: Moberly, Chillicothe (Mo.), Spring Hill (Ks.), Mount Pleasant (Ia.) and Centralia (Ill.).
Under HDI, Mid-Am will continue to operate under its current name and join HDI’s other operating brands Rugby Architectural Building Products, Hardwoods Specialty Products, Novo Building Products, and Frank Paxton Lumber.
“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," said Rob Brown, HDI’s president and CEO. "Mid-Am comes with an experienced team, established customer relationships and a portfolio of specialty and associated products that complement our existing product mix."
The acquisition of Mid-Am, combined with the HDI’s purchase of Novo Building Products in August 2021helped the company achieve "additional diversification for our business,” said Brown. “Combined, we have acquired pro forma annual sales of $950 million 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.”
Mid-Am represents HDI’s eleventh acquisition in the last five years, on a pro forma basis adding over $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.