ON THE MOVE

Canadian fi rm becomes one of largest treaters in the U.S. with latest acquisitions

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.

WeeKs after changing its name from CanWel Building Materials, Doman Building Materials has completed a pair of acquisitions that doubles its presence in Southern California and extends its reach into the Central U.S.

Through its wholly owned subsidiary L.A. Lumber Treating, Doman has acquired Fontana Wood Preserving and Fontana Wholesale Lumber, Fontana, Ca., joining Doman’s California Cascade family of businesses.

Fontana’s treatment plant is near another California Cascade facility, adding fi re retardant treating along with an almost doubling of its overall capacity for Southern California.

“The plant complements our U.S. West Coast operations and strengthens our footprint in the strong Southern California and southwestern U.S. markets,” said chairman and CEO Amar Doman. “This strategic acquisition exemplifi es our strategy of adding scale and volume to the U.S. West Coast in pressure treated lumber and specialty wood products.”

Separately, Vancouver, B.C.-based Doman purchased Hixson Lumber Sales, Dallas, Tx., which operates 19 lumber treating plants from Texas up through Illinois, fi ve specialty sawmills, and a captive trucking fl eet, serving approximately 25 states. It will retain the Hixson name and leadership.

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, logging and trucking operations, and timberlands.

With the deals, Doman has increased from 13 treating facilities in North America to 33. Only Stella-Jones and UFP Industries own more wood treating locations in North America.

“The (Hixson) acquisition was primarily geographic,” said 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 fi t, because we already knew and had good relationships with most of the vendors.”

The deal introduces a bounty of new product off erings 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 fi ber 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 fi nalized, 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.”

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.”

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