Lumber Depot Limited (Lumber) – Acquires Stake in Atlantic Hardware & Plumbing Company Limited

• Lumber Depot Limited (LUMBER) has announced that it has acquired a 35% interest in Atlantic Hardware & Plumbing Company Limited (“Atlantic”).
• Atlantic is a 30-year-old Jamaican company engaged in wholesaling and distributing hardware, building materials, plumbing, electrical, tools, and supplies to hardware stores, contractors, and developers across Jamaica.  The business is located at 7a Ashenheim Road, Kingston 11, and is led by Managing Director Deanall Barnes, an experienced business leader in the trading and distribution of building materials.
• Of note, there will be no change to the business strategy of Atlantic, as it will continue to operate as a dedicated hardware wholesaler and distributor.
• The majority shareholder of Atlantic is Construct Group Limited, a private investment company with expertise in the hardware business as well as general business management. LUMBER will be represented on the Board of Directors of Atlantic by its Managing Director, Major Noel Dawes along with two other directors.
• The acquisition cost totalled $210Mn and was funded internally. Lumber will account for this transaction as of May 1, 2024, the start of its financial year. The acquisition forms part of the company’s strategy for growth and to increase shareholders’ value. It also comes after the company announced in October that it was in negotiations to acquire businesses in the same line of operations.

(Source: JSE)