Centralia, IL—Hardwoods Distribution Inc.’s subsidiary has entered into an agreement to acquire the assets and assume some working capital liabilities of Mid-Am Building Supply, Inc., a 364-employee, $270 million wholesale building products distributor.
Based in Centralia, IL and founded in 1967, Mid-Am reaches over 1,600 ship-to customer locations. Its management team will continue to lead Mid-Am in offering an extensive portfolio of products and services including doors, millwork, kitchen cabinetry, and other diversified building materials. In 2017 Mid-Am invested in a $3 million KVAL door line system and launched its own line of interior and exterior doors, NextEdge.
Mid-Am brings new local presence in the Midwest to Hardwoods Distribution’s existing network of 83 distribution centers. Mid-Am operates five distribution centers with 650,000 sq. ft. of warehouse space serving 10 states, located in Moberly (MO), Chillicothe (MO), Spring Hill (KS), Mount Pleasant (IA) and Centralia (IL). Mid-Am will continue under its current name, joining Hardwoods Distribution’s other operating brands, Rugby Architectural Building Products, Hardwoods Specialty Products, Novo Building Products, and Frank Paxton Lumber.
“We are very pleased to welcome Mid-Am’s capabilities to Hardwoods Distribution, which we believe are complementary to our current operations,” says Rob Brown, Hardwood Distribution president and CEO. “This acquisition is a natural geographic extension from our current locations, providing access to customers and markets in the U.S. Midwest.”
Hardwoods Distribution (exhibiting at IWF 2022 Booth C2146 under Hardwoods Paxton Rugby) said in a statement that the acquisition of Mid-Am, combined with its purchase of Novo Building Products in August 2021, repositioned it to meaningfully participate in this customer channel.
“With the addition of Mid-Am, plus the previous acquisition of Novo, we have achieved additional diversification for our business,” says Brown. “Combined, we have acquired pro forma annual sales of US $950 million in the pro dealer and home center customer channels in the last six months. Looking ahead, approximately 60 percent of our sales mix will be focused on industrial customers, and 40 percent on Pro Dealer / home center. This customer channel diversity, combined with our national footprint and balanced product portfolio, positions HDI as a one-stop-solution for its customers.”
Hardwoods Distribution says the Novo and Mid-Am acquisitions are well timed, and it expects favorable multi-year demand for its products from the new residential and repair and remodel markets, supported by low existing home inventories, favorable demographics, historically low interest rates, rising home equity levels and an aging U.S. housing stock.
Hardwoods Distribution, headquartered in Langley, BC, is one of North America’s largest distributors of architectural grade building and millwork products to the residential and commercial construction industries.