ON THE Move By David Koenig
Canadian treater Doman enters Central U.S. with Hixson acquisition
MICROPRO preservative-treated wood has been offered by Doman’s existing treating plants in Canada and the western U.S., but Hixson’s facilities treat southern yellow pine, manufacture many additional products, and reach an entire new region.
eeKs after changing its name from CanWel Building Materials, Doman Building Materials is expanding into the Central U.S. with its acquisition of Hixson Lumber Sales, Dallas, Tx. Family-owned since 1959, Hixson operates 19 lumber treating plants from Texas up through Illinois, five specialty sawmills, and a captive trucking fleet, serving approximately 25 states. It will retain the Hixson name and leadership. Vancouver, B.C.-based Doman paid $375 million for all of Hixson’s assets, including inventory. They complement but do not overlap with Doman’s current operations, including in the West treater/distributors California Cascade and Hawaii-based Honsador, and in Canada CanWel, which has distribution centers, treating plants, a sawmill,
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logging and trucking operations, and timberlands. In one fell swoop, Doman has increased from 13 treating facilities in North America to 32. Only Stella-Jones and UFP Industries own more wood treating locations in North America. “The acquisition was primarily geographic,” said chairman Amar Doman. “We grew across Canada and then down the U.S. West Coast. The natural next step was eastward, and we found the right partner. It’s an especially nice fit, because we already knew and had good relationships with most of the vendors.” The deal introduces a bounty of new product offerings to Doman, including a full range of southern yellow pine building materials and a long list of in-house manufactured fencing items, balusters, patterned stock, dog ear, and
much more. Another possible opportunity for expansion is that Hixson’s distribution yards concentrate strictly on lumber products. Many of the other larger wood treaters—including CanWel, Honsador and Cal Cascade—also distribute other building materials, such as composite decking and fiber cement siding. Doman said the company does not currently have plans to add such products at Hixson locations, “but will assess all growth opportunities that would add value to our customers and shareholders over time.” A few weeks before the Hixson purchase was finalized, in an unrelated move, Doman changed its name from CanWel, which was formed in 1989. “CanWel came from a merger of distribution from Canfor and Weldwood,” Doman explained. “It was time to drop that back into a more neutral name, and our family has been in the business since the 1950s.” The new name reflects “the company’s strategic growth and evolution from its original roots to where we are today with operations across Canada, the United States, and Hawaii. Our new identity will better reflect our corporate structure, as well as highlight the various market leading brands we represent and are involved with as we reach larger markets.” And what’s next for the fast-growing company? According to Doman, “Right now we have our hands full with Hixson, but we will continue to double-down in markets as the opportunities arise.” Building-Products.com
