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Doman Expands US Footprint with Strategic Lumber Plant Acquisitions in Indiana, Alabama
[Mar 7, 2024]

Doman Building Materials Group Ltd. acquires two lumber pressure treating plants, expanding its reach in the US and boosting its growth strategy.

Doman Building Materials Group Ltd. ("Doman") has significantly bolstered its presence in the central United States through the strategic acquisition of two lumber pressure treating plants formerly owned by Southeast Forest Products Treated, Ltd. Located in Richmond, Indiana, and near Birmingham, Alabama, these new assets not only augment Doman's existing operations but also enable the company to tap into lucrative southern and eastern US markets.

Strategic Expansion and Market Penetration
The newly acquired plants are poised to add approximately 300 million board feet of annual treating capacity to the Doman Lumber platform, marking a significant step in the company's ongoing growth strategy. Amar Doman, Chairman and CEO of Doman, highlighted the acquisition's alignment with the company's objectives, stating that it introduces coverage in eight new states, thereby strengthening Doman's footprint in the strong southeastern US markets and select Eastern states. This expansion is expected to complement Doman's central US operations effectively and create additional value for shareholders.

Financial Implications and Growth Prospects
The acquisition, fully funded by Doman's cash-on-hand, underscores the company's robust financial health and its ability to pursue growth opportunities without diluting shareholder value. This move is anticipated to be accretive to earnings in the current fiscal year, reflecting Doman's strategic approach to acquisitions and its commitment to enhancing shareholder value through thoughtful expansion and integration of new operations into its existing business model.

Looking Ahead: Doman's Growth Trajectory
As Doman Building Materials Group Ltd. integrates these new assets, the focus will be on maximizing the strategic benefits of the acquisition. The addition of the Indiana and Alabama plants not only diversifies Doman's geographical footprint but also reinforces its capacity to serve a broader array of markets across the United States. With a proven track record of successful acquisitions and a clear strategy for growth, Doman is well-positioned to continue its trajectory of expansion, setting the stage for sustained success in the building materials sector.

Source:  bnnbreaking.com