Hardwoods Distribution Inc. (HDI) announced one of its wholly-owned subsidiaries entered an agreement to acquire substantially all of the assets and assume certain working capital liabilities of Mid-Am Building Supply. Mid-Am, founded in 1967, generates annual sales of over $270 million and reaches over 1,600 ship-to customer locations. Mid-Am’s management team will continue to lead the company post-acquisition.
Mid-Am is a wholesale distributor of building products in the midwest. The company focuses on home builder distribution yards, providing customers with a portfolio of products and services including doors, millwork, and other diversified building materials. The distributor operates five distribution centers in Moberly, Mo., Chillicothe, Mo., Spring Hill, Kansas, Mount Pleasant, Iowa, and Centralia, Ill., serving 10 states. Under HDI, Mid-Am will operate under its current name and join HDI’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 HDI, which we believe are complementary to our current operations,” Rob Brown, HDI’s president and CEO, said in a news release. “This acquisition is a natural geographic extension from our current locations, providing access to customers and markets in the U.S. midwest that we do not reach today. Mid-Am comes with an experienced team, established customer relationships, and a portfolio of specialty and associated products that complement our existing product mix.”
The acquisition of Mid-Am is an important strategic addition to HDI’s capabilities in the dealer and home center customer channel, according to HDI. The acquisition of Mid-Am, combined with HDI’s purchase of Novo Building Products in August 2021, has repositioned HDI to meaningfully participate in this customer channel.
“With today’s announced addition of Mid-Am, plus the previous acquisition of Novo, we have achieved additional diversification for our business,” Brown said. “Combined, we have acquired pro forma annual sales of $950 million in the pro dealer and home center customer channels in the last six months. Looking ahead, approximately 60% of our sales mix will be focused on industrial customers, and 40% 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.”
HDI said 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, low interest rates, rising home equity levels, and an aging U.S. housing stock.
The Mid-Am deal represents HDI’s eleventh acquisition in the last five years, on a pro forma basis adding over $1.4 billion in annual revenues.
HDI distributes architectural grade building and millwork products to the residential and commercial construction industries. The company currently operates 83 distribution facilities under five brand names.
