Hardwoods Distribution Inc
* Deal expected to be immediately accretive to both cash flow per share and earnings per share
* Board approved amendment to dividend policy to increase annual dividend from c$0.22 per share to c$0.25 per share
* Following closing of transaction, all of rugby’s 560 employees are expected to remain in place
* In connection with transaction, has entered into agreement with syndicate of investment dealers led by cormark securities
* About 60 percent of purchase price will be funded through increase in borrowing
* Hardwoods may pay future earn-out consideration of up to us$13 million in form of shares or cash at option of hardwoods
* Underwriters agreed to purchase for resale to public on a bought deal basis 3.5 million subscription receipts at c$14.50/ subscription receipt
* Hardwoods announces us$107 million acquisition of rugby architectural building products, c$50 million bought deal financing and a 14% dividend increase Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1-646-223-8780)
Source: Reuters.com