New opportunities for timber imports: Woodgrain acquires Kelleher, dual impact of supply chain stability and price fluctuations

Woodgrain has announced plans to acquire Kelleher Corporation, a move that will enhance its distribution capabilities in the U.S. market and potentially bring a stable supply chain and reduced risk of price fluctuations to Chinese lumber importers.

Woodgrain acquires Kelleher

Release time:January 17, 2025

Woodgrainis a wood processing and building materials manufacturer and distributor operating in the United States and Chile. On Thursday, the company announced that it had signed an asset purchase agreement to acquireKelleher CorporationThe transaction is expected to close by February 28.

Kelleher Corporation distributes moldings, lumber and doors to customers in California, Nevada and Hawaii. The company has warehouse facilities in Northern and Southern California as well as Hawaii. The acquisition will enable Woodgrain to achieve significant growth in these key markets and is expected to improve service, increase product offerings and strengthen its commitment to quality.

Kelly Dame, president and CEO of Woodgrain, said in a statement:

“Kelleher is a company we have always admired. As a family-owned company, Kelleher’s values align perfectly with Woodgrain’s, providing a solid foundation for collaboration, mutual success and market growth.”

Todd Dame, President of Woodgrain Distribution, added:

“The acquisition of Kelleher is an important step in our vertical integration strategy to strengthen our distribution network and enhance our ability to meet growing customer needs in both specialty dealer and home center channels.”

LumberFlow Expert Interpretation

Woodgrain's acquisition of Kelleher may have a profound impact on Chinese timber importers. As Woodgrain expands in the US market, a stable product supply chain will reduce supply risks and may reduce the uncertainty caused by price fluctuations. This provides Chinese importers with a more reliable source of procurement, ensuring that they can obtain the required materials during peak demand periods. In addition, Kelleher's market experience may help Woodgrain further optimize its product portfolio and improve service quality, thereby providing the Chinese market with more diverse timber options.

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