Richelieu opens fiscal year with two new acquisitions
Richelieu continued its expansion in 2019 with four Canadian acquisitions that strengthened our activities in specialized markets: window and door hardware products, architectural hardware for stairs and railing, including stainless steel products and glass.
“Combined with the benefits of our ongoing innovation and market development strategies, these acquisitions enabled us to achieve sales growth of 3.7 per cent for 2019. The fourth quarter was marked by increases of 2.4 per cent in sales, 6.8 per cent in EBITDA, and 5.6 per cent in net earnings, said Richelieu president and CEO, Richard Lord. “Sales in the manufacturers market rose four per cent in Canada and 2.8 per cent in the United States, while sales in the retailers market declined 5.6 per cent in Canada and 26.7 per cent in the United States in the fourth quarter. In line with previous years, Richelieu ended 2019 with a sound and solid financial position. Continuous innovation in the product offering and customer service as well as business acquisitions remain Richelieu’s two prime growth drivers.”
The start of the fiscal new year began on a strong note with two new acquisitions: Decotec Inc., a distributor of decorative panels and related products with a distribution centre in Toronto, Ont., on Dec. 2, 2019, and Mibro, a distributor of hardware products and power tool accessories intended to the retailers market, which was acquired a few days later on December 9.
“A leader in its field for over 65 years, Mibro serves a wide range of customers in Canada and the United States from two distribution centres located in Toronto and Buffalo. Combined with the four acquisitions completed in fiscal 2019, annual sales will represent approximately $70 million,” said Lord. “These acquisitions provide us with access to expert resources and strengthen our position in these key and strategic markets for Richelieu’s future. Furthermore, we have just signed an agreement in principle to acquire a U.S. distributor operating in new strategic regions for Richelieu. This transaction would generate additional sales of approximately (U.S.) $15 million on an annual basis.”