Quanex Building Products Announces Definitive
Agreement to Acquire Edgetech I.G.
January 31, 2011
Quanex Building Products Corp. today announced it has signed a definitive agreement with Lauren International to acquire Edgetech I.G. Inc. for $107 million in an all cash transaction. Closing will take place immediately upon conclusion of applicable governmental regulatory approval. The acquisition is expected to be accretive in year one, and additional information will be disclosed at closing.
Quanex Building Products Corp. is a manufacturer of engineered materials, components and systems serving the U.S. residential door and window markets. Edgetech I.G. is headquartered in Cambridge, Ohio, and has three manufacturing facilities (US/UK/Germany) that produce and market a full line of insulating glass spacer systems for door and window customers in North America and abroad. Edgetech's products separate and seal double- and triple-pane glass within a window frame and its products further act as a thermal barrier that conserves energy. It will be part of Quanex's Engineered Products Group.
"I am pleased to announce our pending acquisition of Edgetech, a technological leader of insulating glass spacer systems for the window and door industry," says David Petratis, chairperson and chief executive officer of Quanex. "The acquisition of Edgetech will complement our efforts to provide our customers with the broadest range of high quality components, products, systems and services. The vast majority of windows manufactured today feature double or triple insulating glass, and with window production set to rise as the housing and remodeling markets recover, the long-term outlook for the business is excellent. Acquiring Edgetech will allow us to better serve our growing base of large and regional customers and will further accelerate our international growth as they have a solid market presence overseas. We are excited about the prospects of developing the next generation of energy efficient spacer systems through the combination of Edgetech and Truseal's disparate technologies. This is a great example of the type of acquisition we will make as we seek to profitably grow Quanex while providing a better value proposition to our customers.
"Quanex first entered the window and door market in 1989 with the acquisition of Nichols Homeshield," Petratis continues. "Homeshield at the time was, and remains today, one of the largest producers of finished window screens. In 2002, we purchased Colonial Craft, a supplier of window grilles. Then in 2003, we acquired Truseal, a supplier of window spacer systems. In 2004, we acquired Mikron, a leading producer of vinyl and composite window profiles. The acquisition of Edgetech will complement our ability to better serve our window and door customers with industry leading products and services and further establishes Quanex as a leading supplier of energy efficient components and systems."
Stay tuned to USGNN.com for further details as they emerge.