Issue 27 – Knock on Wood
Hardwoods Distribution (TSX:HDI) is the largest distributor of architectural building products in North America with 63 locations and over 1100 employees. HDI has become a vital link between large suppliers of lumber products and smaller industrial manufacturers. Currently, the three main revenue sources for the company are residential (50%), commercial (30%), and diversified (20%). Despite the competitive market position of HDI, it still only represents 10% market share in North America. The company has lots of room to grow both organically and through accretive acquisitions like the recent purchase of Atlanta Hardwood Corporation in June.