Renin Holdings, which is backed by BBX Capital, has acquired Montreal-based Colonial Elegance, a provider of building products. The purchase price is about US$39 million.
FORT LAUDERDALE, Fla. & BRAMPTON, Ontario–(BUSINESS WIRE)–BBX Capital, Inc. (OTCQX: BBXIA) (PINK: BBXIB) (“BBX Capital” or “the Company”) announced today that Renin Holdings LLC (“Renin”), its wholly-owned subsidiary which manufactures and distributes sliding doors, door systems and hardware, and home décor products, has acquired substantially all of the assets and assumed certain of the liabilities of Colonial Elegance for a purchase price of approximately USD $39.0 million before adjustments for working capital.
Headquartered in Montreal, Canada, Colonial Elegance is a supplier and distributor of building products, including barn doors, closet doors, and stair parts, and its customers include various big box retailers in the United States and Canada which are complementary to and expand Renin’s existing customer base. Colonial Elegance’s calculation of its EBITDA for the year ended April 30, 2020 was CAD $8.1 million (USD $6.1 million translated at an exchange rate of 1.337 CAD/USD). Colonial Elegance’s calculation of its EBITDA for the year ended April 30, 2020 and a reconciliation to its reported net income for such period is set forth below under “Non-GAAP Financial Measure.”
“We are pleased to announce our acquisition of Colonial Elegance and believe it is an excellent fit for our Renin vertical,” commented Jarett Levan, Chief Executive Officer of BBX Capital. “Renin has had success in its manufacturing and distribution of closet doors and barn doors throughout North America, and we believe the addition of Colonial Elegance will allow Renin to expand into new markets and geographic areas.”
Joseph Ruffo, Chief Executive Officer of Renin, also commented, “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. We are delighted to promote the Renin and Colonial Elegance brands throughout our distribution channels and welcome the Colonial Elegance associates to the Renin family.”
Renin funded the acquisition with proceeds from a credit facility originated by Renin in connection with the acquisition and a USD $5.0 million equity contribution from BBX Capital. In addition to the purchase price of USD $39.0 million, Renin also acquired estimated excess working capital held by Colonial Elegance for approximately USD $5.1 million, of which USD $1.0 million was held back at closing. Pursuant to the terms of the acquisition agreement between Renin and Colonial Elegance, the final working capital adjustment amount will be determined by Renin and Colonial Elegance during the 90 day period following closing and may result in the payment of additional amounts to Colonial Elegance, including the release of all or a portion of the working capital adjustment holdback, or a refund to Renin (if the estimated working capital adjustment at closing exceeds the actual working capital adjustment by an amount in excess of the working capital adjustment holdback).
About BBX Capital, Inc.: BBX Capital, Inc. (OTCQX: BBXIA) (PINK: BBXIB) (formerly a subsidiary of BBX Capital Corporation) is a Florida-based diversified holding company whose principal investments include BBX Capital Real Estate, BBX Sweet Holdings, and Renin. For additional information, please visit www.BBXCapital.com.
About Renin: Headquartered in Ontario, Canada, Renin is engaged in the design, manufacture, and distribution of sliding doors, door systems and hardware, and home décor products and operates through its two manufacturing and distribution facilities in the United States and Canada. In addition to manufacturing its own products, Renin also sources products and materials from China and Vietnam. Renin’s products are sold through three channels in North America: retail, commercial, and direct installation in the greater Toronto area. For additional information, please visit www.Renin.com.