June 13 (Reuters) - Hardwoods Distribution Inc HWD.TO
* Deal expected to be immediately accretive to both cash
flow per share and earnings per share
* Board approved amendment to dividend policy to increase
annual dividend from c$0.22 per share to c$0.25 per share
* Following closing of transaction, all of rugby's 560
employees are expected to remain in place
* In connection with transaction, has entered into agreement
with syndicate of investment dealers led by cormark securities
* About 60 percent of purchase price will be funded through
increase in borrowing
* Hardwoods may pay future earn-out consideration of up to
us$13 million in form of shares or cash at option of hardwoods
* Underwriters agreed to purchase for resale to public on a
bought deal basis 3.5 million subscription receipts at c$14.50/
subscription receipt
* Hardwoods announces us$107 million acquisition of rugby
architectural building products, c$50 million bought deal
financing and a 14% dividend increase
Source text for Eikon: ID:nCNWgn0WBa
Further company coverage: HWD.TO
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