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Richelieu acquires Outwater Hardware a major distributor operating in New Jersey, U.S.

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  Published in House and Home on Tuesday, January 11th 2011 at 5:56 GMT by Market Wire
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TSX: RCH

MONTREAL, Jan. 11 /CNW Telbec/ - Richelieu Hardware Ltd. announces it has closed the acquisition of the net assets of Outwater Hardware ("Outwater"), located in Lincoln Park, New Jersey, U.S. This company operates a major specialty and decorative hardware distribution centre that serves a base of some 18,000 residential and commercial woodworking customers and kitchen, bathroom cabinet and furniture manufacturers in all 50 U.S. states. In business since 1961, Outwater has developed an operational strategy fully compatible with Richelieu, including a one-stop shop approach, experienced customer service active in the field and close to customers and a transactional website. For Richelieu, the acquisition of Outwater represents additional sales of more than $15 million on an annualized basis and an immediate contribution to its earnings.

Through this acquisition, Richelieu strengthens its presence in the United States where it had acquired four businesses in 2010, especially in the Greater New York-New Jersey Area where it is now present with three distribution centres, bringing its U.S. network to 23 centres. A seasoned team thus joins Richelieu, and Outwater will continue to benefit from the experience of its two shareholders who remain part of Outwater's management.

As announced at the end of 2010, Richelieu had also signed two new agreements for two other upcoming acquisitions. With the seven acquisitions closed since the beginning of 2010 and the transactions underway, the Company is expected to increase its sales by some $100 million on an annualized basis.

Profile as at January 11, 2011
Richelieu is a leading North American distributor, importer and manufacturer of specialty hardware and complementary products. Its products are targeted to an extensive customer base of kitchen and bathroom cabinet, furniture, and window and door manufacturers plus the residential and commercial woodworking industry, as well as a large customer base of hardware retailers, including renovation superstores. Richelieu offers customers a broad mix of high-end products sourced from manufacturers around the world. Its product selection consists of more than 70,000 different items targeted to a base of some 60,000 customers who are served by 57 centres in North America - 34 distribution centres in Canada, 23 in the United States and two manufacturing plants in Canada, specifically Cedan Industries Inc. which specializes in the manufacture of a wide variety of veneer sheets and edgebanding products, and Menuiserie des Pins Ltée which manufactures components for the window and door industry and a broad selection of decorative mouldings.

Certain statements contained in this press release may constitute forward-looking statements within the meaning of securities legislation. Richelieu's management would like to point out that, by their very nature, forward-looking statements involve a number of risks and uncertainties such that the Company's actual and future results could differ materially from those indicated. There can be no assurance as to the materialization of the results, performance or achievements as expressed in or underlying the forward-looking statements. Unless required to do so pursuant to applicable securities legislation, Richelieu's management assumes no obligation as to the updating or revision of the forward-looking statements as a result of new information, future events or changes.