CanWel Building Materials Group acquired the Honsador Building Productions Group of companies from Colorado-based Grey Mountain Partners for $80 million in cash, subject to customary post-closing adjustments.

The transaction will be structured as an acquisition of all of the issued and outstanding common shares of Honsador Acquisition, the parent holding company of the Honsador group of companies.

“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 CEO 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.”

Honsador is being acquired on a cash-free and debt-free basis, and includes the assumption of approximately $26 million of net working capital. The transaction is being funded through a combination of the offering 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 amended its existing $325 million senior credit facility with Wells Fargo Capital Finance Canada by adjusting 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.

GMP Securities acted as financial advisor to CanWel, and a team of Dorsey & Whitney, Carlsmith Ball and Goodmans acted as its legal advisors.

Vancouver, BC-based CanWel is Canada’s only fully integrated national distributor in the building materials and related products sector.