Quanex Building Products Completes Its Acquisition of Edgetech I.G.
April 1, 2011
Quanex Building Products Corp. today announced it has completed the previously announced acquisition of Edgetech I.G. Quanex paid $107.0 million in an all cash transaction and the acquisition is expected to be accretive in year one.
“I am pleased to announce our completed acquisition of Edgetech, a leading manufacturer of warm-edge insulating glass spacer systems for U.S. and internationally based window and door customers,” said David Petratis, chairperson and chief executive officer of Quanex. “Acquiring Edgetech not only strengthens our company and enhances our team, it complements our on-going efforts to provide our customers with the broadest range of high quality components, products, systems and services the fenestration industry has to offer. Acquiring Edgetech will allow us to better serve our growing base of large and regional customers and will further accelerate our international growth. Together, we will develop the next generation of energy efficient spacer systems.”
Petratis added, “Our two companies have been working diligently since January to ensure a smooth integration of Edgetech into our Engineered Products segment. Integration is on-track and progressing well, which will ensure a seamless experience for our combined customer base. Quanex and its family of businesses remain committed to driving outstanding customer service in the fenestration industry.
“Excluding parent overhead allocation, Edgetech reported unaudited 2010 sales of $76 million, EBITDA of $12.2 million and operating income of $10.4 million. These amounts exclude expected synergies currently estimated at a high level to be $2 million to $3 million, and without giving effect to the acquisition. Edgetech represents the type of acquisition we want to make as we seek to profitably grow Quanex while providing a compelling value proposition to our customers. We have a team working on synergy opportunities that will position Quanex and its brands as the leading fenestration component supplier in the industry by providing its customers with the highest quality products available, produced in the most efficient way possible,” Petratis concluded.