HDI acquires River City Millwork

Hardwoods Distribution Inc. (HDI), through its subsidiary Rugby Holdings LLC, has purchased River City Millwork Inc.

Located in Rockford Illinois, River City is a wholesale distributor of interior and exterior doors, custom millwork, and other building products. The company’s estimated annual sales are $14 million.

Following the acquisition, River City will operate under the Rugby banner.

The transaction purchase price of $4.2 million was financed by a draw on HDI’s existing U.S. credit facility

“We are pleased to announce the acquisition of River City Millwork,” said Rob Brown, HDI president and CEO. “River complements the Pacific Mutual Door business we purchased in the fourth quarter of 2019, strengthening existing supply relationships and expanding our geographic footprint.”

Brown said that HDI has been strategically growing its presence in doors and related millwork distribution. 

“The performance of this product category has been one of our strongest year-to-date and now represents over 15% of consolidated revenues,” Brown noted. “We expect this product category to benefit from the increase in U.S. residential home building and repair and remodel construction.” 

River City is the company’s third acquisition in 2020. Last week HDI announced that it had acquired Aura Hardwoods for $12.7 million.

Based in Langley, British Columbia, HDI operates a network of 73 distribution centers under the Hardwoods Specialty Products; the Frank Paxton Lumber Company; and Rugby Architectural Building Products banners. HDI also operates one sawmill and kiln drying operation, Hardwoods of Michigan.