Lumber Depot Limited (JSE:LUMBER) has announced its acquisition of 35% of hardware wholesale distributor, Atlantic Hardware & Plumbing Company Limited for over $210 Million JMD.
The acquisition is valued at $210M for 35% of Atlantic via Lumber Depot’s internal funds.
The transaction will be reflected within Q1 2024. The majority shareholder of Atlantic will remain Construct Group Limited which is a private investment company that specialises in the hardware business and general business management.
What does this mean for Atlantic?
The acquisition will see no changes made to Atlantic’s business strategy as a dedicated hardware wholesaler and distributor.
Lumber will now be represented on the Board of Directors of Atlantic by its Managing Director, Major Noel Dawes along with two other directors.
At 1:51 PM, the LUMBER stock on the JSE Junior market was up by 7.66% or $0.20, reaching a price of $2.81.
About Lumber
A full-service hardware store in Papine that serves the needs of large and small-scale building contractors, as well as homeowners doing construction projects, renovations and repairs.
Lumber Depot Limited is a full-service, hardware and building materials company that has been in operation in the Jamaican building supplies sector since 1998.
The Company was incorporated and domiciled in Jamaica on July 30, 2019, but commenced operations over 20 years ago as a division of Blue Power Group Limited.
The Company has been listed on the Junior Market of the Jamaica Stock Exchange since December 16, 2019, after a demerger from Blue Power Group in August 2019.
About Atlantic
Atlantic Hardware & Plumbing Co. Ltd is a 30-year-old family-owned Jamaican business that focuses on wholesale distribution of a wide variety of hardware, electrical, tools and plumbing products to hardware stores, contractors, and developers across Jamaica.
The business is located at 7a Ashenheim Road, Kingston 11 and is led by Managing Director, Deanall Barnes.
The company supplies and distributes to many small and medium-sized hardware retail stores in Jamaica, as per their LinkedIn page.
There is a noted civil dispute which began in 2012 and ended in 2018 via the Jamaica Supreme Court, Atlantic Hardware Plumbing Company Limited v Guardsman Limited which was dismissed. The case involved the pilfering of goods and the liability of the loss being placed on the security Guard involved.
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