We are excited to announce that effective November 2, 2009, the Bailey Group has acquired the business of Dietrich Metal Framing Canada.

Whereas this decision to acquire a competitor comes at a time of uncertainty relative to the economy and general construction market activity, it has been a very carefully calculated risk, one that came down to the realization that it is ultimately our customers who will benefit from a broader range of products and services. What makes this acquisition more complex is that there are three aspects to the transaction:

First, is the acquisition of the Dietrich business in Canada and the four operations located in Vancouver, Edmonton, Toronto and Montreal. Each location will run independently for a brief period of time as they will be absorbed into the existing Bailey operations as quickly as possible.

Second, is that Bailey will retain the exclusive distribution rights to all of Dietrich’s proprietary and nonproprietary products in Canada. In effect, we will now be the licensed promoter and distributor for Dietrich products should our customers or specifiers request them.

Third, is the signing of a manufacturing license of Bailey’s paper bead product line to Dietrich in the United States. This agreement gives Dietrich USA the rights to manufacture and promote our paperbead products through most of the USA.

Please feel free to contact us directly should you have any questions or concerns.