BuildDirect announces acquisition of Superb Flooring & Design; expanding U.S. Pro market share
Delivering on BuildDirect's strategy to accelerate growth through its leading omnichannel platform by making select, accretive acquisitions
VANCOUVER, BC, Nov. 17, 2021 /PRNewswire/ - BuildDirect.com Technologies Inc. (TSXV: BILD) ("BuildDirect" or "Company"), today announced that it acquired Michigan-based full-service flooring retailer, Superb Flooring & Design LLC ("Superb" or the "Acquisition") for a total purchase price of USD $10 million. The acquisition closed on the morning of November 17, 2021.
Superb is an established brand name serving Pro builder customers (home builders, condominium developers, commercial and residential contractors, interior designers, architects, and multi-family property managers) across the U.S. mid-West, which when compared with other Pro customer segments tends to be more concentrated, and larger in size and scale. In the period ended September 30, 2021 Superb generated unaudited revenue of over USD $18 million and greater than $2 million in EBITDA in the trailing 12 months.
Superb's focus on exceptional customer service and over 50 years of collective experience provides BuildDirect with the opportunity to capture additional market share and on-the-ground expertise in serving the Pro customer. The Superb platform represents strong product selection assistance together with reliable project management, and installation services to its builder Pros. Leveraging the synergies available through BuildDirect's digital and supply chain capabilities will advance Superb's ability to serve its existing Pro customers and provides the potential to grow our combined market share in Michigan and the surrounding area.
"Uniting with Superb will enable BuildDirect to meet more customers where they are, helping them to adapt to a new home improvement digital era through our innovative digital platform and supply chain network," said Dan Park, CEO of BuildDirect. "We're confident in our strategy to leverage our digital and delivery platform, and becoming a true innovator in the space."
Ethan Rudin, CFO of BuildDirect added, "As BuildDirect's second acquisition in Michigan, we welcome the opportunity to work with the expert teams at both Superb and FloorSource to rapidly expand our combined share of the mid-West U.S. Pro market. Superb's longstanding Pro builder customer base aligns directly with our strategy to acquire B2B-focused targets, increasing our Pro customer base, and improving the end-to-end experience for these key customers. Our acquisition pipeline remains robust with accretive opportunities at various stages of development."
"BuildDirect and Superb are joining forces to offer a unique omnichannel experience to our customers," said Lonnie Pukoff, founder of Superb Flooring & Design. "In addition to its digital platform, BuildDirect's product selection, heavyweight shipping infrastructure, and offshore sourcing capabilities will create advantages for Superb. We are thrilled to work with BuildDirect to reach our common goal of providing quality service and products to our Pro customers."
Acquisition Details
BuildDirect has purchased 100% of the fully diluted outstanding capital stock of Superb for a total purchase price of USD $10 million (the "Purchase Price") and will be fully funded in cash. The Purchase Price is payable pursuant to an initial payment on close of the Acquisition, together with certain deferred payments following the closing date of the Acquisition a portion of which is subject to Superb's achievement of certain performance metrics. The Purchase Price is also subject to customary post-closing working capital adjustments.
The Acquisition is an arm's length transaction for the purposes of the policies of the TSX Venture Exchange ("TSXV"). BuildDirect does not expect shareholder or regulatory approval will be required. Management understands that this acquisition qualifies as an "Exempt Transaction" under TSXV Policy 5.3. No finder's fees have been or will be paid by BuildDirect in relation to this acquisition."
About BuildDirect
BuildDirect (TSXV: BILD) is an innovative technology platform for purchasing and selling building materials online. The BuildDirect platform connects homeowners and home improvement professionals in North America with suppliers and sellers of quality building materials from around the world, including flooring, tile, decking and more. BuildDirect's growth, proprietary heavyweight delivery network, and digital reach have served to solidify its role as a ground-breaking player in the home improvement industry. For more information, visit www.BuildDirect.com.
Forward-Looking Information
This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. These statements reflect management's current beliefs and expectations and are based on information currently available to management as at the date hereof.
Forward-looking statements in this press release may include, without limitation, statements relating to BuildDirect's ability to take advantage of trends in home improvement investment, its innovative digital and heavyweight supply chain platform and ability to leverage the same, the omni-channel experience to be offered to customers; realization of synergies and overall integration of Superb's operations with BuildDirect (including, but not limited to, Superb's ability to improve service to its existing customers as well as increase Superb's market share in the state of Michigan and BuildDirect's ability to increase its Pro customer base and improve the end-to-end experience for its customers); capturing of additional Pro customer market share; quality service and products; future acquisitions; Superb's potential growth; and the Company's ability to make future payments in connection with the purchase of Superb.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Among those factors are changes in consumer spending, availability of mortgage financing and consumer credit, changes in the housing market, changes in trade policies, tariffs or other applicable laws and regulations both locally and in foreign jurisdictions, availability and cost of goods from suppliers, fuel prices and other energy costs, interest rate and currency fluctuations, retention of key personnel and changes in general economic, business and political conditions. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions, including COVID-19.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements.
Although the forward-looking statements contained in this press release reflect the Company's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. There may be other risks, uncertainties and factors that cause results not to be as anticipated, estimated or intended and such changes could be material. These forward-looking statements are made as of the date of this press release, and BuildDirect assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
SOURCE BuildDirect.com Technologies Inc.
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article