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Renin acquires Colonial Elegance
Posted on Friday, 23 October 2020 12:38
Renin, a subsidiary of BBX Capital, has snapped up Canada-based buildings products supplier and distributor Colonial Elegance for USD 39.00 million.

In addition, the buyer also acquired excess working capital of around USD 5.10 million from the target, of which USD 1.00 million was held back at closing.

Renin financed the deal with proceeds from a credit facility and a USD 5.00 million equity contribution from BBX Capital.

Montreal-headquartered Colonia Elegance supplies and distributes a range of building products, including doors, closet doors and stair parts, for big box retailers across Canada and the US.

Alongside its core operations, the company also provides tracking and valet services.

During the financial year ended 30th April 2020, Colonial Elegance posted earnings before interest, tax, depreciation and amortisation of CAD 8.10 million (USD 6.16 million).

Joseph Ruffo, chief executive of the acquiror, said: “We believe the combination of these two businesses will establish Renin as a leader in barn doors and closet doors, support the expansion of the growing door hardware and stair parts business, and provide a promising avenue for continued growth.

“In addition, we believe that the increased scale of the combined businesses will result in better overall service and selection for our customers and improved logistics and cost efficiencies for Renin.”

The buyer will also gain access to Colonia Elegance’s big box retailers, which will complement and expand the group’s existing client base.

Based in Ontario, Renin designs, makes and distributes sliding doors, door systems and hardware, among other products.

The company operates two manufacturing and distribution facilities in the US and Canada and sources materials from China and Vietnam.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 37 deals targeting lumber, plywood, millwork and wood panel merchant wholesalers announced globally since the beginning of 2020.

Builders FirstSource agreed to buy US-based BMC Stock Holdings for USD 2.46 billion in the most valuable of these.

© Zephus Ltd