Building Materials Holding Corporation to Acquire Western Door Company.
Building Materials Holding Corporation (Nasdaq:BMHC) today announced that its wholly owned subsidiary BMC West Corporation has signed a definitive agreement to purchase substantially all of the assets of Western Door Company, a millwork operation in Missoula and Kalispell, Montana that had 1998 sales of approximately $9 million. The transaction is expected to close in the second quarter of 1999.
"The acquisition of Western Door demonstrates BMHC's continued ability to execute its growth strategy of increasing the number of locations producing and selling value-added products," said Robert E. Mellor, president and chief executive officer of Building Materials Holding Corporation.
"With this acquisition, BMC West becomes the only one-stop full-service building materials distributor in western Montana, which the Company believes will provide an important strategic advantage in attracting new customers and generating additional sales from existing customers.
"BMC West's 1998 acquisition of Intermountain Lumber and Building Supply established the Company's presence in western Montana, and now the addition of Western Door, with its full range of millwork products, should solidify BMC West's leadership position among professional contractors and builders in this market. BMC West's working capital management, purchasing power and strong sales and marketing efforts should have a substantial impact on the financial performance of this operation going forward. In keeping with BMHC's company-wide acquisition criteria, this transaction is expected to be accretive to earnings on a pro forma basis."
Certain statements made in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors are discussed in detail in Building Materials Holding Corporation's Form 10-K for the fiscal year ended December 31, 1998. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained in the Annual Report on Form 10-K or this news release.
Building Materials Holding Corporation is a leading distributor of building materials to professional new residential and commercial and industrial contractors and builders as well as professional repair and remodel contractors.
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|Date:||May 3, 1999|
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