CanWel Building Materials Group Ltd.
TSX : CWX.UN

CanWel Building Materials Group Ltd.

November 04, 2005 16:06 ET

CanWel Building Materials Income Fund Announces Strategic Partnership for its Pro and Ace Banner

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 4, 2005) -

NOT FOR RELEASE OR DISSEMINATION INTO THE UNITED STATES

CanWel Building Materials Income Fund (the "Fund") (TSX:CWX.UN) and TruServ Canada Cooperative Inc., are pleased to announce a strategic alliance in which TruServ will extend their existing banner management and retail services to the Pro and Ace banners, enhancing the competitiveness of the independent retailer across Canada.

"After a detailed review, we believe that TruServ Canada is the best choice to build the Pro and Ace banners and provide the independent retailer with a proven platform in which to enhance their businesses. Both organizations are dedicated to the long-term success of the truly independent retailer in Canada. The alliance allows each company to focus on their core competencies," commented Amar S. Doman, Chairman of Canwel.

TruServ Canada and Canwel are entering into a strategic alliance that builds a stronger platform designed to enhance the competitiveness of independent retailers across Canada. This alliance will service the largest Canadian independent dealer/member network, with over 1,400 retail locations, nationwide.

Under this alliance, TruServ Canada will provide brand support, advertising, marketing services, product development, and vendor relationships. The independent dealer/member will benefit from stronger buying power, increased advertising support, dedicated retail specialists and services and enhanced import opportunities.

"TruServ Canada Cooperative is dedicated to the growth and improved profitability of independent retailers. We are pleased to enter into an alliance with CanWel that will give independents 1,400 store negotiation power," says Pierre Levesque, Chairman of TruServ Canada. TruServ Canada is a 100 percent Canadian Member-Owned Cooperative that is committed to its theme of "Supporting Independent Retailers".

About CanWel

The Fund trades on the Toronto Stock Exchange under the symbol CWX.UN and is one of Canada's largest national distributors in the building materials and related products sector, with over $1 billion in revenues, operating 17 distribution centres across Canada. The Fund distributes a wide range of hardware, building materials, lumber, and renovation products.

Further information can be found in the disclosure documents filed by CanWel Building Materials Income Fund with the securities regulatory authorities, available at www.sedar.com.

Forward Looking Information

Certain statements in this press release may constitute "forward looking" statements. When used in this press release, such statements use words, including but not limited to, "may", "will", "expect", "believe", "plan", "intend", "anticipate" and other similar terminology. These forward-looking statements reflect the current expectations of CanWel's management regarding future events but involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CanWel, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These factors include sales and margin risk, customer risk, dependence on market economic conditions, interest rate risk, growth risk, risks of acquisitions, competition, supply of commodities and volatility of commodity prices, supply-side risks, inventory risk and risks relating to renewals of supply and customer arrangements, and the seasonal and cyclical nature of Canwel's. Given these and other unknown risks, CanWel's management cannot be certain what result or impact if any, the strategic alliance may have on CanWel's financial results or whether the Company's current banner customers will seek to utilize the alliance or benefit therefrom. Furthermore, management cannot be certain, what impact, if any, may result from reactions of other CanWel customers that compete with the members of the strategic alliance. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the periodic and other reports filed by CanWel with Canadian securities commissions and available on SEDAR (http://www.sedar.com). CanWel does not undertake, and specifically disclaims, any obligation to update or revise any forward looking information, whether as a result of new information, future developments or otherwise.

Contact Information

  • CanWel Building Materials Income Fund
    Tom Donaldson
    President
    (604) 432-1400
    or
    Genoa Management Limited
    Ali Mahdavi
    Investor Relations
    (416) 962-3300
    amahdavi@genoa.ca