Lignum Forest Products: CanWel Building Materials Announces Acquisition of Lignum Forest Products LLP

NOT FOR RELEASE OR DISSEMINATION INTO THE UNITED STATESVANCOUVER, British Columbia, March 27, 2019 (GLOBE NEWSWIRE) -- CanWel Building Materials Group Ltd. ("CanWel" or "the Company") (TSX:CWX, CWX.NT.A)) announced today that certain of its subsidiaries have entered into a definitive purchase agreement (the "Agreement") with Conifex Timber Inc. (TSX:CFF) (the "Vendor") to acquire (the "Acquisition") Lignum Forest Products LLP ("Lignum"), a private partnership which operates a lumber marketing and distribution business.Lignum is a well-established brand in the lumber and forestry distribution market in western Canada and the US. The acquisition further solidifies and complements CanWel's North American distribution capabilities and reach with existing and new customers, through the addition of Lignum's network of established inventory locations.The purchase price of the Acquisition will be satisfied from CanWel's current balance sheet."Lignum is a well-respected brand in many of our markets and we are extremely pleased to be able to further solidify our North American lumber marketing and distribution capabilities with this acquisition," said Amar Doman, Chairman and CEO of CanWel.The Acquisition is expected to be accretive to CanWel's fiscal 2019 financial results. The Company expects the Acquisition to close on or around April 1, 2019.About CanWel Founded in 1989, CanWel is headquartered in Vancouver, British Columbia and trades on the Toronto Stock Exchange under the symbol CWX and is Canada's only fully integrated national distributor in the building materials and related products sector. CanWel operates: multiple treating plant and planing facilities in Canada and the United States; distribution centres coast-to-coast in all major cities and strategic locations across Canada; in the United States near Portland, Oregon (commissioning), San Francisco and Los Angeles, California and in 14 locations in the State of Hawaii through its wholly owned Honsador Building Products Group. CanWel distributes a wide range of building materials, lumber, renovation and electrical products. In addition, through its CanWel Fibre division, CanWel operates a vertically integrated forest products company based in Western Canada, operating from British Columbia to Saskatchewan, also servicing the US Pacific Northwest. CanWel owns approximately 136,000 acres of private timberlands, strategic Crown licenses and tenures, log harvesting and trucking operations, several post and pole peeling facilities and two pressure-treated specialty wood production plants and a specialty saw mill.For further information regarding CanWel please contact: Ali MahdaviInvestor Relations416-962-3300ali.mahdavi@canwel.comCertain statements in this press release may constitute "forward-looking" statements including but not limited to, statements regarding the Acquisition (and the anticipated terms and benefits). When used in this press release, forward-looking statements often but not always, can be identified by the use of forward-looking words such as, including but not limited to, "may", "will", "would", "should", "expect", "believe", "plan", "intend", "anticipate", "predict", "remain", "estimate", "potential", "continue", "could", "might", "project", "targeting", "future" and other similar terminology or the negative or inverse of such words or terminology. These forward-looking statements reflect the current expectations of CanWel's management regarding future events and operating performance, but involve other known and unknown or unpredictable risks, uncertainties and other factors which may cause the actual results, performance or achievements of CanWel, including but not limited, to sales, earnings, cash flow from operations, dividends or EBITDA(1) generated or paid by CanWel, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements should therefore be construed in the light of such factors. Actual events could differ materially from those projected herein and depend on a number of factors. These factors include but are not limited to, (i) the risk that CanWel, the Vendor, or Lignum may not be able to satisfy conditions to the Acquisition on the expected terms and schedule; (ii) the risk that cost savings and synergies expected to result from the Acquisition may not be fully realized or may take longer to realize than expected; (iii) the risk that the existing and acquired business from the Acquisition will not be integrated successfully or that there is an unexpected disruption from, or reaction to, the Acquisition making it more difficult to maintain relationships with customers, employees or suppliers; (iv) the risk that CanWel may not be able to operate the lumber pressure treating plant and related equipment and business formerly owned by Western ...Full story available on Benzinga.com