TORONTO — Royal Group Technologies Ltd. expanded its Canadian distribution network by purchasing seven warehouses across the country from Reynolds Aluminum Co. of Canada Ltd.'s construction products unit.
The warehouses were the main remnants of Reynolds Canada's construction products division, after its U.S. parent sold the U.S. construction products business to AmeriMark Building Products Inc. in March.
Reynolds Canada sold aluminum and vinyl siding, soffit and other products through the warehouses. Until recently it made aluminum construction products in Toronto and resold vinyl products made for it by Royal Group, said a Reynolds Canada official.
Toronto-based Royal did not disclose terms of the deal, which included the vinyl distribution business and certain related assets, in its Oct. 2 announcement.
AmeriMark bought Reynolds Metals Co.'s U.S. construction products business, including a vinyl siding plant in Richmond, Va., in March. Subsequently, Owens Corning of Toledo, Ohio, said July 29 that it would pay $310 million for AmeriMark of Raleigh, N.C.
The Canadian warehouses did not import vinyl siding from Reynolds Metals' plant in Virginia, said Pat Flaherty, sales director for Reycan Inc. of Montreal. Reycan, the restructured company replacing Reynolds Canada, is owned jointly by Reynolds Metals and a Quebec merchant banking group.