Lumber Depot acquires big slice of Atlantic Hardware
Published:Friday | May 24, 2024 | 12:07 AM
Hardware company Lumber Depot Limited has taken a stake in a rival operation.
Lumber Depot announced on Tuesday that it bought a 35 per cent stake in Atlantic Hardware & Plumbing Company Limited for $210 million.
The purchase price values Kingston-based Atlantic Hardware at $600 million. Lumber Depot itself had a book value of $662 million as at January and a market value of $1.96 billion, or three times its book value, at the close of trading on the stock market on Wednesday.
Atlantic Hardware has been in existence for three decades. The Jamaican company trades in hardware, building materials, plumbing, electrical items and tools. Its client base includes hardware stores, contractors and developers, Lumber Depot indicated in a market filing.
“There will be no change to the business strategy of Atlantic, and it will continue to operate as a dedicated hardware wholesaler and distributor,” Lumber Depot said.
Atlantic Hardware is majority owned by Construct Group Limited, described as “a private investment company with expertise in the hardware business as well as general business management”.
The hardware company is headed by Deanall Barnes as its managing director. Lumber Depot will take three seats on Atlantic’s board, one of which will be held by its Managing Director, Major Noel Dawes. The two other Lumber directors to be assigned seats were not named, but the pool of eligible candidates include Jeffrey Hall, Vikram Dhiman, Lisa Kong, George Overton, Paul Scott and Melanie Subratie.
Lumber will book the transaction in its first quarter, which extends from May to July.