Richelieu Hardware Ltd. reported a 12.6 per cent increase in third-quarter sales to $562 million as acquisitions and internal growth lifted revenue, while the Montreal-based company continued expanding its North American distribution network.
The specialty hardware distributor said sales growth for the quarter ended Aug. 31 included 10 per cent from internal growth and 2.6 per cent from acquisitions. Net earnings attributable to shareholders rose 22.4 per cent to $29.2 million, while the company completed two acquisitions during the quarter and acquired a U.S. hardware division shortly afterward.
Richelieu has completed five acquisitions since the beginning of its 2026 fiscal year, representing about $145 million in additional annual sales. It is also investing $15 million to expand its distribution centre in Drummondville, Que., as it prepares for further growth.
“The strong growth and strategic expansion we have achieved once again demonstrate the relevance of our business model, which enables us to meet our customer needs, take advantage of excellent acquisition opportunities and continue driving the Corporation’s future growth. Our market development efforts increased sales across all market segments despite an uncertain economic environment. In the manufacturers’ market, sales increased 11.5% to $493.3 million, including 8.9% internal growth and 2.6% from acquisitions.
“Sales to retailers and home improvement superstores increased 20.9% to $68.7 million, reflecting, among other things, initial deliveries made to a major customer in the United States. The acquisitions of Solutions Acoustiques in the Montreal region and Winnec in the Toronto region completed during the third quarter have added expertise, specialized products, customers, and additional sales. As for Penrod’s Hardware Division, the largest acquisition we have completed to date, it contributes an additional US$70 million in annual sales, expanded market coverage through seven new centres located across seven U.S. states, and a service-oriented corporate culture fully compatible with Richelieu’s,” said Richard Lord, President and Chief Executive Officer.
“In addition, we recently announced a $15 million investment to expand the scale of our Drummondville distribution centre and support our growth. We are proud of this new development in the Centre-du-Québec region, which relies on local expertise and plays an important role in strengthening our network.”
Acquisitions expand U.S. network
Richelieu’s acquisition strategy added distribution capacity and specialized product offerings in both Canada and the United States. During the third quarter, the company acquired Solutions Acoustiques, a distributor of standard and premium acoustic products in the Montreal region, and Winnec, a specialized hardware distributor operating three distribution centres in the Toronto region.
On Sept. 1, Richelieu acquired the hardware division of The Penrod Company, adding about US$70 million in annual sales and seven distribution centres across North Carolina, Texas, Minnesota, California, Colorado, Arizona and Florida.
The acquisition expands Richelieu’s reach among door manufacturers, architects, residential and commercial contractors, and specialty distributors. The company described Penrod as its largest acquisition to date.
Earlier in the fiscal year, Richelieu acquired three distribution centres from McKillican American in Oregon and Washington state, as well as Finium, a Quebec-based distributor and manufacturer of premium wall covering panels.
Distribution centre expansion planned
Richelieu is also expanding its Drummondville distribution centre to support its operations. The $15-million project will increase the facility’s size from 40,000 square feet to 180,000 square feet and is expected to be completed in spring 2027.
The company reported working capital of $702.6 million as of Aug. 31, with a current ratio of 3.2 to 1.
Richelieu also declared a quarterly dividend of 15.66 cents per share, payable Nov. 5 to shareholders of record on Oct. 22.
The company imports, manufactures and distributes specialty hardware and complementary products for cabinetmakers, furniture manufacturers, woodworkers, door and window producers, and hardware retailers. It said its North American network includes 124 centres, comprising 54 distribution centres in Canada, 66 in the United States and four manufacturing plants in Canada.
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