Doman Building Materials Group Acquires CM Tucker Lumber Companies

Vancouver, BC-based Doman Building Materials Group Ltd. announced on Monday that it has acquired South Carolina-based CM Tucker Lumber Company for US$255 million in cash. According to Doman, Tucker Lumber is being acquired on a cash-free and debt-free basis, and the transaction is being funded from the company’s existing cash on hand and revolving credit facilities.

Tucker Lumber is headquartered in Pageland, South Carolina, employing 425 personnel across three locations. The Pageland facility is vertically integrated, comprising a specialty sawmill, dry kilns, treating plants, remanufacturing operations, and distribution facilities. Treating plants located in Henderson, North Carolina, and Rock Hill, South Carolina, provide added capacity and capabilities to quickly service Eastern US markets.

Tucker Lumber offers a comprehensive variety of products, including treated lumber and plywood, decking, deck posts, balusters, spindles, handrails, step stringers, step treads, fence panels, fence pickets, round fence posts, and split rail fencing. Tucker Lumber’s operations are highly complementary to Doman’s existing US Central and West Coast operations without overlap, the company said. The transaction will facilitate Doman’s growth and geographic coverage, will be immediately accretive, and will expand its product suite to include new offerings.

In a statement accompanying the announcement, Doman Chairman and CEO Amar Doman said:

“We are very excited with the addition of Tucker Lumber to the Doman Group of companies. The transaction is a great complement to our existing US operations while further advancing our growth strategy, developing a leadership position, and expanding our footprint into ten previously unserved states. We continue our disciplined approach in tracking and executing on accretive growth opportunities, further strengthening our financial performance, and enhancing shareholder value based on a fundamentally sound and sustainable growth plan. With this transaction, our US footprint now extends from coast-to-coast plus Hawaii, and we proudly operate 37 treating plants across our system. We look forward to working with David, Paul, Mark, and Andrew Tucker along with the entire Tucker Lumber team in this significant new development for our organization. Additionally, I’d like to acknowledge and thank our banking partners, Wells Fargo, CIBC, RBC, and TD for their important role in this transaction. Their long-standing support continues to be an integral component of our growth and success.”