Cameron Ashley Building Products, Inc. signs memorandum of understanding to acquire new Canadian operations.

DALLAS, Texas--(BUSINESS WIRE)--March 3, 1997--Cameron Ashley Building Products, Inc. (Nasdaq:CABP) announced today that it has signed a memorandum of understanding to acquire Bois Daigle, Ltee., a Canadian distributor of building materials headquartered in Boucherville, Quebec.

The transaction is expected to be effected through the purchase of all of the outstanding shares of Daigle from its sole owner, Simard-Beaudry Inc. (Montreal:SDB), a Quebec-based construction and building materials company. The transaction, subject to certain conditions including but not limited to the completion of the due diligence process and the approval of the boards of directors of Cameron Ashley Building Products and Simard-Beaudry, is expected to close on or about April 30, 1997. Terms of the transaction were not disclosed.

Daigle reported 1996 revenues of approximately $47 million (U.S.). The company services primarily do-it-yourself centers, lumber yards, and hardware stores through the seven distribution centers it owns and operates. Its customer base stretches from Quebec to Northeastern Canada. Daigle's product line consists primarily of interior/exterior doors, garage doors, exterior coverings, and insulation and roofing materials. The company also assembles steel doors in all of its locations.

"The strategic acquisition of Daigle will complete our Canadian two-step network and allows us to provide our existing Canadian customer base with 100% service coverage and a broader product line," commented Ronald R. Ross, Chairman of Cameron Ashley Building Products. "Daigle will also enhance Cameron Ashley's high-margin millwork capabilities and increase our Canadian presence from 16 to 23 locations."

Richard Friesen, President of Cameron Ashley's Canadian operations, noted: "We are excited about the acquisition of Daigle and look forward to working with Daigle's current suppliers and customers as we expand our operations together."

Cameron Ashley Building Products, Inc. is a distributor of a broad line of building products that are used principally in home improvement, remodeling and repair work and in new residential construction. The Company distributes its products to independent building material dealers, professional builders, large contractors and mass merchandisers through a network of 130 branches located throughout the United States and Canada. Product lines include roofing, millwork, pool and patio enclosure materials, insulation, siding, steel products, industrial metals and a variety of other building materials.

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