Mr. Shawn Wilson reports

BUILDDIRECT ACQUIRES ANCHOR AND YORKSHORE FLOORING ASSETS TO ACCELERATE FLORIDA EXPANSION AND PRO CENTER GROWTH

Builddirect.com Technologies Inc. has acquired substantially all of the operational assets of Anchor Flooring and Supply Company LLC and Yorkshore Sales and Marketing Inc., well-established flooring distributors based in Orlando, Fla., for $593,000 (U.S.). Anchor and Yorkshore are entities held by common ownership.

This acquisition marks a strategic step forward in Builddirect's plan to expand its Pro Center network across North America, enhancing its reach and ability to serve the professional contractor market in key U.S. regions.

"Acquiring Anchor's and Yorkshore's assets strengthens our presence in Florida, and aligns with our strategy to grow our Pro Center footprint," said Shawn Wilson, chief executive officer of Builddirect. "This addition not only bolsters our distribution capabilities but also builds on our commitment to provide high-quality service and product availability to our Pro Customers."

A strategic fit for Pro Center expansion

Anchor and Yorkshore bring established relationships with local builders and contractors, a well-stocked inventory, and proven operational expertise. For the 12-month period ended Dec. 31, 2024, Anchor and Yorkshore reported consolidated unaudited revenue of $5.8-million (U.S.) and earnings before interest, taxes, depreciation and amortization of $661,000 (U.S.). With its strong reputation in the Florida market, this acquisition aims to provide:

• Increased market penetration: a strengthened position in the southeastern United States, one of the fastest-growing regions for construction and remodelling;
• Enhanced product offering: access to a broader inventory of flooring products to better serve builder and contractor needs;
• Operational synergies: opportunities to optimize distribution networks and leverage Builddirect's proprietary supply chain model/

"Our Pro Center strategy emphasizes disciplined growth through building and buying new locations to serve our professional customers more effectively," continued Mr. Wilson. "The addition of Anchor's and Yorkshore's assets enhances our ability to provide tailored solutions and strengthen relationships with builders, contractors and designers in key markets."

Strengthening the company's commitment to Pro Customers

This acquisition reinforces Builddirect's continuing commitment to serving professional customers, a core segment of the $90-billion-plus retail flooring market. By combining targeted acquisitions with the development of new Pro Center locations, Builddirect aims to build a scalable platform for growth while positioning itself to expand into adjacent markets.

"Anchor's and Yorkshore's assets are a strategic addition to our portfolio, fully aligned with our vision to grow the Pro Center network while maintaining operational excellence," said Kerry Biggs, chief financial officer of Builddirect. "We remain committed to executing with financial discipline and pursuing strong, long-term value for our stakeholders."

"This acquisition not only strengthens our Pro Center footprint, but also enhances our e-commerce fulfilment capabilities across the U.S. southeast," said Jay Allen, chief operating officer of Builddirect. "As we transition out of our final third party logistics provider in the region, integrating Anchor and Yorkshore's facility into our network gives us greater control, improved service levels and operational efficiency for both Pro and e-commerce customers."

Transaction details

Builddirect has agreed to acquire substantially all of the operational assets of Anchor and Yorkshore for $593,000 (U.S.) fully financed and paid on close. The acquired assets include $593,000 (U.S.) in inventory and tangible assets, Anchor's and Yorkshore's customer lists, and other key operational assets.

The acquisition is an arm's-length transaction under TSX Venture Exchange policies and does not require shareholder approval. No finders' fees were paid in connection with the transaction.

About Builddirect.com Technologies Inc.

Builddirect is an expanding omnichannel building material retailer, specializing in Pro Centers -- strategic distribution hubs designed to serve professional contractors and trades. The company is actively scaling its footprint through a combination of organic growth and strategic acquisitions, driving efficiency and market expansion.

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