Goodfellow Inc.
TSX : GDL

Goodfellow Inc.

January 22, 2016 15:21 ET

Goodfellow Inc. Completes the Acquisition of Quality Hardwoods Ltd.

DELSON, QUEBEC--(Marketwired - Jan. 22, 2016) - THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Goodfellow Inc. (TSX:GDL) today announced that it has completed the acquisition of the shares of Quality Hardwoods Ltd. located in Powassan, ON.

Quality Hardwoods Ltd. manufactures, sells and distributes Hardwood lumber products in Ontario and the US. Average consolidated sales of the acquired company for the past three years averaged $13.7 million. The purchase price was $5.7 million including net assets of $4.1 million at book value, subject to post-closing adjustments. Goodfellow has financed the acquisition through its existing revolving credit facility.

"The acquisition of Quality Hardwoods will strengthen Goodfellow's hardwood market position in Canada and the USA. We expect to improve the coverage of Quality Hardwood customer needs with a complement of Goodfellow products. Quality Hardwoods will continue to operate as a separate entity delivering the quality of product and service they are known for said Denis Fraser, President and Chief Executive Officer of Goodfellow Inc. We expect this transaction to be immediately accretive to earnings and are happy to welcome the Quality Hardwoods team in the Goodfellow community".

About Goodfellow Inc.

Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.

For more details, please go to www.goodfellowinc.com

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