CanWel to acquire Broadleaf

CanWel Building Materials, a national distributor of building materials across Canada, has announced its plans to acquire Broadleaf Logistics for $81 million. The privately held Broadleaf will become part of CanWel in a cash, stock and debt transaction for $20 million cash, 10.25 million common shares of CanWel and a U.S-dollar-denominated note worth the equivalent of about C$19.5 million.

Broadleaf employs 270 people and has 14 distribution centers across Canada.

Vancouver-based CanWel, which is traded on the Toronto Stock Exchange under CWX.UN, distributes building and home improvement products to independent lumberyards, regional building material dealers and national home improvement chains including Rona, Home Depot and Home Hardware. It also sells to millwork shops and the industrial and manufactured housing sectors.