Recently bought into CWX , as i was going thru dividend paying stocks with near term dividend date approaching. CWX one of the top yielding stocks on the tsx currently paying a 8.8 % dividend annually and sports a very low P/E of 6.5 . Recent news of expanding business into the US is a positive going forward as revenues and profits should increase. CEO Amar Doman is well known as a turnaround artist , and will make this latest acquisition look like gold. Doman has been buying big into CWX the past year at last count 2 million $ worth, so obvious he sees big things for Canwel. Globe says CanWel insider Doman continues to buy shares 2017-08-14 06:16 MT - In the News The Globe and Mail reports in its Saturday edition that CanWel Building Materials ($6.06) boss Amar Doman has spent more than $2-million buying company shares in the public market over the past two years. The Globe's Ted Dixon writes in the Who's Buying and Selling column that Mr. Doman's most recent buying binge started July 31. So far, he has bought 43,100 shares at an average price of $6.05. CanWel Building to acquire Honsador for $100-million 2017-09-05 06:08 MT - News Release Mr. Amar Doman reports CANWEL ANNOUNCES $100 MILLION ACQUISITION OF LEADING HAWAIIAN BUILDING PRODUCTS COMPANY AND CONCURRENT $50 MILLION BOUGHT DEAL EQUITY FINANCING CanWel Building Materials Group Ltd. has entered into a definitive agreement with Colorado-based Grey Mountain Partners whereby CanWel will acquire 100 per cent of the Honsador Building Products group of companies (1) for $80-million (U.S.) (approximately $100-million) in cash, subject to customary postclosing adjustments. Founded in 1935, Honsador is a leading distributor of building products and electrical supplies and the largest producer of pressure-treated wood in Hawaii, with 14 facilities across the Big Island, Maui, Oahu and Kauai serving the residential, commercial and military markets. The transaction will result in Honsador becoming an indirect wholly owned subsidiary of CanWel and will combine Honsador's operations with CanWel's well-established and growing North American platform. Transaction highlights: Diversified and complementary operations: The transaction facilitates further penetration of the U.S. West Coast markets and provides entry into a robust and captive market with high barriers to entry. CanWel immediately obtains a market leadership position with a diversified and loyal customer base. Continued wood treatment expansion: Postclosing, CanWel would become the largest pressure-treated lumber producer in Hawaii with approximately 150 million board feet of annual capacity, adding to the company's existing base of pressure-treated plants. Financially attractive: The acquisition of Honsador effectively doubles CanWel's sales in the United States (2) while increasing CanWel's pro forma EBITDA (earnings before interest, taxes, depreciation and amortization) (3) by approximately 25 per cent. The transaction is expected to be positively accretive to CanWel's annual earnings and free cash flow (4) per share by approximately 10 to 15 per cent (prior to synergies) and lead to further expansion of CanWel's EBITDA margins. Synergy potential: Synergies are expected from integration with CanWel's existing California business given the close proximity to shipping ports. Additional operational and margin synergies are expected to be realized over time, including scale and purchasing benefits on pressure-treated inputs, and utilization of CanWel's established purchasing, sales and distribution channels. Skilled operational leadership team: Honsador includes a committed and strong management team that shares mutual best practices on a well-run platform. Key management will remain in place and bring over 50 years of combined industry experience, further adding to CanWel's bench strength. "We are very excited with the addition of Honsador to the CanWel family. The transaction is a great complement to our existing U.S. operations while further advancing our growth strategy and developing a leadership position on the West Coast of the U.S.," said Amar Doman, chairman and chief executive officer of CanWel. "We continue our disciplined approach in tracking and executing on accretive growth opportunities, further strengthening our financial performance, and enhancing shareholder value based on a fundamentally sound and sustainable growth plan. "I am also pleased to announce that the Futura Corp., CanWel's largest shareholder, will be subscribing for $5-million under the offering, details of which follow below," Mr. Doman added. Honsador is being acquired on a cash-free and debt-free basis, and includes the assumption of approximately $26-million (U.S.) of net working capital. The transaction is being financed through a combination of the offering (as described below) and CanWel's existing revolving credit facilities, resulting in CanWel maintaining a constant leverage profile. Closing is subject to the satisfaction of customary conditions and is anticipated early in the fourth quarter of 2017. The company is also pleased to announce that it has reached agreement to amend its existing $325-million senior credit facility with Wells Fargo Capital Finance Corp. Canada by amending the revolving credit limit to $300-million and the accordion acquisition credit limit to $25-million from $275-million and $50-million, respectively, effective concurrent with the closing of the transaction. Bought-deal private placement In conjunction with the transaction, CanWel has entered into an agreement with a syndicate of underwriters led by GMP Securities LP, pursuant to which the underwriters have agreed to purchase, on a bought-deal private placement basis, 8.55 million subscription receipts of CanWel at a price of $5.85 per subscription receipt for gross proceeds of approximately $50-million. CanWel has also granted the underwriters an option, exercisable up to two business days prior to the offering closing date, to arrange for the purchase of up to an additional 1,282,500 subscription receipts at the offering price for additional gross proceeds of up to $7.5-million. The net proceeds from the offering will be used to partially finance the transaction consideration. Each subscription receipt will entitle the holder to receive, without further consideration or action, one common share of CanWel upon satisfaction of certain escrow release conditions to be included in a subscription receipt agreement, including the satisfaction of all conditions precedent (but for the payment of the purchase price) of the transaction, provided that the conditions have been satisfied by Dec. 31, 2017. The offering is expected to close on or about Sept. 26, 2017, and is subject to the completion of formal documentation and certain other conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange. If the proposed transaction is not completed on or before Dec. 31, 2017, or the proposed transaction is terminated at an earlier time, holders of subscription receipts will receive a cash payment equal to the offering price of the subscription receipts and any interest that was earned thereon during the term of the escrow. CanWel currently pays a quarterly dividend of 14 cents per share and CanWel currently intends to maintain its current dividend policy, implying an annualized dividend yield of 9.6 per cent at the offering price. The first dividend that holders of the common shares will be entitled to receive, should they continue to hold the common shares, is the dividend expected to be paid on or about Jan. 15, 2018, to holders of record on Dec. 29, 2017. For greater certainty, holders of subscription receipts will not be entitled to receive any dividends paid on the common shares prior to the exercise of the subscription receipts or closing of the transaction. The subscription receipts will be sold in Canada on a private placement basis pursuant to accredited investor exemptions under National Instrument 45-106. Advisers and counsel GMP Securities LP acted as financial adviser to CanWel and a team of Dorsey & Whitney LLP, Carlsmith Ball LLP and Goodmans LLP acted as its legal advisers. About CanWel Building Materials Group Ltd. Founded in 1989, CanWel is headquartered in Vancouver, B.C., trades on the Toronto Stock Exchange under the symbol CWX, and is Canada's only fully integrated national distributor in the building materials and related products sector. CanWel operates multiple treating plant and planing facilities in Canada and the United States, and operates distribution centres coast to coast in all major cities and strategic locations across Canada and near San Francisco and Los Angeles, Calif. CanWel distributes a wide range of building materials, lumber and renovation products. In addition, through its Jemi Fibre division, CanWel operates a vertically integrated forest products company based in Western Canada, operating from British Columbia to Saskatchewan, also servicing the U.S. Pacific Northwest. (1) The transaction will be structured as an acquisition of all of the issued and outstanding common shares of Honsador Acquisition Corp., the parent holding company of the Honsador group of companies
