Tenon subsidiaries buy US companies

Tenon said today two of its United States' businesses have made strategic acquisitions for undisclosed sums.

The Empire Company Inc, in which Tenon has a 67 per cent stake, has bought Kok's Woodgoods, a Zeeland, Michigan based specialist manufacturer of wood products including mouldings, casings, and chair rail.

Meanwhile, American Wood Moulding, (AWM) a 50 per cent Tenon-owned company, has purchased on option, exercisable during 2006, to buy an initial 50 per cent stake in Jim White Millwork, a subsidiary of the Jim White Group. As part of the deal AWM has the right to increase its stake to 100 per cent before September 2009.

Jim White Millwork, located in Grand Rapids, Michigan, supplies wood mouldings to the commercial and industrial market.

The United States is of growing importance to Tenon, and last month the company raised the idea of adopting the United States dollar as its functional currency.

At the time the company said such a move would reflect the fact that most of its continuing revenues and earnings would come from US domiciled distribution operations, while the US was also the main market for its Taupo processing operations.

Shares in Tenon gained 1c to $3.66 this morning, having ranged between $3.60 and $4.72 over the past 12 months.

- NZPA