Doman Building Materials Group Stock

CanWel Building Materials Group Ltd. operates as a wholesale distributor of building materials and home renovation products and provider of wood pressure treating services in Canada, and regionally in the Western United States mainland and Hawaii.

The company services the new home construction, home renovation and industrial markets by supplying the retail and wholesale lumber and building materials industry, hardware stores, industrial and furniture manufacturers and similar concerns.

The company’s operations also include timber ownership and management of private timberlands and Crown forest licenses, full service harvesting and trucking operations, and post-peeling and pressure treating for the agricultural market through CanWel Fibre Corp.

In 2017, the company acquired the Honsador Building Products group of companies, with an incumbent position in the state of Hawaii, further expanding the company’s presence in the U.S. building distribution and treating markets.

In 2018, the company continued with its expansion and growth plans, completing the purchase of a partially constructed lumber pressure treating plant near Portland, Oregon in June 2018; and a lumber pressure treating plant in Woodland, California in December 2018.

In 2019, the company completed the acquisition of Lignum Forest Products LLP, a primary brand in the lumber and forestry distribution market in Western Canada and the United States.

In June 2018, the company acquired certain assets and the business of Superior Forest Products, Inc. (doing business as Oregon Cascade Building Materials, Inc. ‘OCBM’) (the ‘OCBM Acquisition’). Based in Junction City, Oregon, OCBM provides lumber pressure treating services for customers primarily based in Oregon and Washington. The OCBM Acquisition is expected to complement the company’s existing treated lumber and specialty wood products business in the United States.

In December 2018, the company acquired certain assets and the business of Western Wood Treating, Inc. (doing business as Woodland Wood Preservers, Ltd. ‘Woodland’) (the ‘Woodland Acquisition’). Based in Woodland, California, Woodland specializes in pressure treated wood products. The Woodland Acquisition is expected to expand the company’s presence in the United States treating markets.

Segments

The company operates through two segments, Distribution and Forestry.

Distribution

This segment includes wholesale distribution of building materials and home renovation products, including value-added services, such as pressure treating.

Forestry

This segment includes timber ownership and management of private timberlands and Crown forest licenses, logging and trucking operations, and value-added services, such as post-peeling and post and pole pressure treating operations.

Seasonality

The company’s sales are subject to seasonal variances that fluctuate in accordance with the normal home building season, particularly in the Canadian market. The company experiences higher sales in the second and third quarters (year ended December 2019) compared to the first and fourth quarters. While the company has leveled dividends to provide a regular income stream to shareholders over the course of a year, the second and third quarters have historically been the company’s most profitable.

History

CanWel Building Materials Ltd. was founded in 1989. The company was incorporated in 2009 under the Business Corporations Act (British Columbia).