The price of Doman Building Materials Group Ltd. (OTCPK: CWXZF) rose by 7.53% to $ 7.7477 in the last session. The Doman stock traded 8.46K shares recently, above its average daily volume of 4.96K, increasing its market cap to $671.12M. The CWXZF stock increased following an acquisition.
What has CWXZF acquired?
Doman is a leading Canadian distributor of building materials headquartered in Vancouver, British Columbia. A national distributor for building materials & related products, CWXZF is Canada’s only fully integrated distributor.
Doman operates several distinct divisions: CanWel Building Materials, Hixson Lumber Company, California Cascade, and the Honsador Building Products Group. CWXZF also runs a vertically integrated forest products business from British Columbia to Saskatchewan, as well as serving the Pacific Northwest region of the U.S. through its CanWel Fibre division.
It was announced last Wednesday by Doman that it had acquired Hixson Lumber Sales of Texas.
- With the acquisition of the Hixson Lumber Sales group of companies, CWXZF acquired its entire assets for approximately $375 million in cash, including inventory.
- CWXZF is acquiring Hixson completely debt-free and its cash on hand and available credit facilities are being used to fund the Transaction.
- In the Central United States, Hixson is a leading wholesaler and manufacturer of lumber and treated lumber.
- Hixson’s operations complement and do not overlap with the CWXZF’s current US West Coast operations.
How will the acquisition benefit CWXZF?
Doman (CWXZF) will benefit from the Transaction, as it is immediately accretive and will expand its product line. By completing the Transaction, CWXZF will continue to advance its growth strategy and improve its competitive position in the US central corridor.