Taiga acquiring Exterior Wood
Exterior Wood has been operating a wood treatment facility and distribution center in Washougal, Wa. since 1977.
Taiga Building Products Ltd., the Burnaby, British Columbia, Canada-based wholesale building products distributor, has entered into an agreement to acquire Exterior Wood, Inc.
Terms of the deal call for a subsidiary of Taiga to acquire all of the issued and outstanding common shares of Exterior Wood for a price of about US$42 million.
Exterior Wood has been operating a wood treatment facility and distribution center in Washougal, Wa. since 1977, and services retail building supply centers throughout the western United States and Canada with a wide array of pressure treated products.
The acquisition will expand Taiga’s existing wood treatment operations, which incluedes three facilities in Canada, with additional penetration into the United States market. Taiga currently operates 15 distribution centers in Canada and 2 distribution centers in Northern California along with 6 reload locations in the Eastern U.S.
“The acquisition of Exterior Wood and the expansion of our wood treatment business represents a significant step forward in our corporate strategy of pursuing value enhancing opportunities,” Trent Balog, president and CEO of Taiga, said in a statement issued by the company. “With a well-established customer and supplier base, we believe that the Exterior Wood acquisition will be accretive to Taiga’s business and will successfully integrate within our proven operational capabilities, in addition to expanding our distribution reach in a strategic region.”
Added Dave Perry, president of Exterior Wood, “We are excited to be associated with a company as well respected in our industry as Taiga. In addition to placing a high value on our customer relationships, suppliers and employees, it has a culture that matches very well with the one we have developed over time at Exterior Wood. We are enthusiastic about what the future holds as we work together.”
Taiga produces preserved lumber at 3 plants strategically located to service the Canadian market, the company said.
Flashback Friday: The Golden Rule ‘Q’
The Feb. 8, 1988 issue of National Home Center News, the forerunner of HBSDealer, recognized the efforts of Portland, Maine-based distributor Emery-Waterhouse to launch a “store of the future.”
The Golden Rule “Q” program – “Q” stands for quality” – targeted individual or family owned lumber-yards wishing to remodel or build a new store. In launching the program, Emery-Waterhouse laid claim to the distinction of “first independent distributor to offer its lumberyard dealers a store of the future.”
Timber Mart was the first to sign up. The single-unit dealer in Seabrook, N.H., saw sales increase 24% since it opened its new, 40,000 sq. ft. store in late 1987. The photo above reveals warm colors, a racetrack layout and tall fixtures.
Here’s how Ron Johnson, the company’s Q-program fixtures and fittings manager, described it: “It’s of paramount importance to address the contractor business as well as enhancing the DIY.”
“I was mesmerized by the home center concept and increasing margins,” said Fred Stiles, president of Timber Mart. “But I’m the single owner and wear 12 hats and didn’t have time to spend on the new project.”
In 2000, Timber Mart transformed its business model to focus exclusively on kitchen, bath and floor covering. The brand didn’t last long after that.
As for the distributor Emery-Waterhouse, the company was acquired by Ace Hardware Corp. in 2014.
Do you remember the Q program? Let us know at [email protected]
HBSDealer’s Throwback Thursday is sponsored by Schaffer Associates, a national management consulting firm specializing in executive search and organizational strategies for the hardware, home improvement, building materials, and consumer products industries. As the premier management consulting firm serving the industry, we help build organizations and leadership teams that foster corporate growth and success well into the future. Contact us at SchafferAssociates.com.
HBSDealer Stock Watch: Tuesday’s ticker
|Hardware and building supply stocks experienced another mixed day on Wall Street on Tuesday. There were more winners than losers, but just slightly — 16 of the 30 stocks tracked finished higher. The biggest movers were BXC (down 4.15%) and HBP (down 6.74%).|
|BLDR (Builders FS)||18.38||+0.22%|
|BMCH (BMC Stock)||20.95||-0.48%|
|CENT (Central Garden)||44.54||+2.27%|
|DE (Deere & Co.)||140.24||-0.65%|
|HD (Home Depot)||193.62||-0.21%|
|LL (Lumber Liquidators)||24.64||+2.45%|
|SMG (Scotts Miracle-Gro)||83.75||+0.32%|
|TSCO (Tractor Supply)||76.13||+0.51%|
|UFPI (Universal Forest)||37.35||+0.73%|