DOMAN PURCHASES TREATER CM TUCKER

Doman Building Materials Group Ltd. has acquired South Carolina-based CM Tucker Lumber Companies, LLC. The company acquired the assets of Tucker Lumber for approximately $255 million in cash. Tucker Lumber is being acquired on a cash-free and debt-free basis, and the transaction is being funded from the Company’s existing cash on hand and revolving credit facilities.

Founded in 1920, Tucker Lumber is headquartered in Pageland, S.C., employing 425 personnel across three locations. The Pageland facility is vertically integrated, comprising a specialty sawmill, dry kilns, treating plants, remanufacturing operations and distribution facilities. Treating plants located in Henderson, N.C., and Rock Hill, S.C., provide added capacity and capabilities to quickly service Eastern U.S. markets. Tucker Lumber offers a comprehensive variety of products, including treated lumber and plywood, decking, deck posts, balusters, spindles, handrails, step stringers, step treads, fence panels, fence pickets, round fence posts and split rail fencing.

Tucker Lumber’s operations are highly complementary to the company’s existing U.S. Central and West Coast operations without overlap. The transaction will facilitate the Company’s growth and geographic coverage, will be immediately accretive and will expand the Company’s product suite to include new offerings.

“We are very excited with the addition of Tucker Lumber to the Doman Group of companies. The transaction is a great complement to our existing U.S. operations while further advancing our growth strategy, developing a leadership position and expanding our footprint into ten previously unserved States,” said Amar Doman, chairman and CEO. “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. With this Transaction, our U.S. footprint now extends from coast-to-coast plus Hawaii, and we proudly operate 37 treating plants across our system. We look forward to working with David, Paul, Mark and Andrew Tucker along with the entire Tucker Lumber team in this significant new development for our organization.”

• Diversified and Complementary Operations. The Transaction facilitates the Company’s ongoing United States expansion by entering the important Eastern U.S. region - a large, robust and active market. Previously unserved states include South Carolina, North Carolina, Florida, Georgia, Virginia, West Virginia, Delaware, Maryland, New York and Pennsylvania. The Company immediately obtains a significant market position in this region with a diversified and loyal customer base from its current U.S. locations.

• Continued Wood Treatment Expansion. Tucker Lumber adds approximately 800 million board feet of treating capacity and builds on Doman’s position as one of the largest pressure-treated lumber producers in North America with over three billion board feet of approximate annual capacity.

• Financially Attractive. The acquisition of Tucker is expected to increase the Company’s sales in the United States by approximately 40%, and the purchase price is consistent with the Company’s traditional targeted EBITDA multiples range for acquisitions. The Transaction is expected to be immediately accretive to the Company’s annual earnings and free cash flow per share and is expected to lead to further expansion of EBITDA margins.

• Skilled Operational Leadership Team. Tucker Lumber is an exceptionally-run, family-owned business that has a strong legacy in its key markets and strong relationships with its customer and suppliers. Tucker Lumber has a committed and strong management team. Key management is inclusive of highly experienced, key Tucker family operators who will remain in place, further adding to the Company’s bench strength.

• Synergy Potential. The Company expects to realize scale-based synergies from this well-run business. Opportunities for additional operational and margin synergies are expected to be realized over time, including purchasing benefits on pressure-treated inputs, shared best practises and utilization of the Company’s established purchasing, sales and distribution channels and access to the Company’s infrastructure and resources.

The transaction was completed on October 1, 2024, and is not subject to any further regulatory or shareholder approvals or consents.

Founded in 1989, Doman is headquartered in Vancouver, B.C., and trades on the Toronto Stock Exchange under the symbol DBM.

As Canada’s only fully integrated national distributor in the building materials and related products sector, Doman operates several distinct divisions with multiple treating plants, planing and specialty facilities and distribution centres coast-to-coast in all major cities across Canada and coast-to-coast across the United States.

Strategically located across Canada, Doman Building Materials Canada operates distribution centers coast-to-coast, and Doman Treated Wood Canada operates multiple treating plants near major cities. In the United States; headquartered in Dallas, Texas, Doman Lumber operates 21 treating plants, two specialty planing mills and five specialty sawmills located in nine states, distributing, producing and treating lumber, fencing and building material servicing the central U.S.; Doman Tucker Lumber operates three treating plants, specialty sawmilling operations and a captive trucking fleet serving the U.S. East Coast; Doman Building Materials USA and Doman Treated Wood USA serve the U.S. west coast with multiple locations in California and Oregon; and in the state of Hawaii the Honsador Building Products Group services 15 locations across all the islands. The company’s Canadian operations also include ownership and management of private timberlands and forest licenses, and agricultural post-peeling and pressure treating through its Doman Timber operations.