Home Hardware Stores Limited recently completed its $68 million purchase of various assets of Beaver Lumber Company Limited from Molson Inc., paying $33 million in cash and $35 million in assumed debt. The transaction also involved the extension of a credit facility to Home Hardware by The Bank of Nova Scotia as lead lender with support from HSBC Bank Canada. The transaction brings 138 new dealers who will continue to operate under the Beaver Lumber banner into the Home Hardware network of 1,100 dealer-owned hardware and building supply retailers across the country with annual revenues approaching $3 billion. The acquisition strengthens Home Hardware’s position as a national home improvement retailer with dealers in practically every community across Canada.
Home Hardware Stores Limited was represented by Gowling, Strathy & Henderson (Waterloo Region office), which worked closely with Gordon Mackay Jr., in-house counsel at Home Hardware. The Gowlings team was led by Val A. Cottrill and Peter M. Koch, and included Manuel A. Martins (financing), Thomas K. Hunter and Rose M. Johnson (real estate), R. Ross Wells and Ian S. Campbell (labour and employment), Martha Milczynski (Toronto office – pensions), Harry Dahme (Toronto office –environmental), and William L. Vanveen (Ottawa office –competition).
Borden & Elliot acted for The Bank of Nova Scotia and HSBC Bank of Canada, and Ogilvy Renault acted for Beaver Lumber Company Limited and Molson Inc. William S. Robertson and Daniel F. Hirsh led the Borden & Elliot team, and James A. Riley and Michael A. Weinczok led the Ogilvy Renault team.