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Apogee extends architectural product offerings

Post Time:Nov 12,2013Classify:Industry NewsView:86

In another example of convergence in the industry, Apogee Enterprises Inc., Minneapolis, purchased Tubelite Inc., Walker, Mich., at the end of December, to grow its presence in architectural markets. “No question more deals like this will be happening,” said Max Perilstein, vice president of sales and marketing for Arch Aluminum and Glass, Tamarac, Fla. “Bobby Silverstein of Arch was the one 30 years ago who really started the metal and glass together concept and after all this time people are finally starting to embrace and imitate that. There's no doubt that there's metal guys right now looking to marry a glass guy to be able to be a true single source.” Apogee purchased 100 percent of the stock of Tubelite, which fabricates aluminum storefront, entrance and curtain wall products for the U.S. commercial construction industry, for about $44 million. Apogee designs and develops value-added glass products and services for the architectural and picture framing industries. The market for storefront and entrance products is estimated at more than $1 billion, said Russell Huffer, Apogee chairman and chief executive officer, in a company news release. “These products are usually purchased and installed by the same glazing subcontractor that installs curtain wall and windows, two core product lines currently offered by Apogee companies,” he said in the release. For years Tubelite has worked closely with Apogee’s Linetec company, which applies paint and anodized finishes to Tubelite’s extrusions, said Ken Werbowy, Tubelite president, in the release. “We look forward to working with the other Apogee architectural businesses to further strengthen and grow our market position,” he said in the release. Perilstein says it will take time, energy and resources for Apogee to incorporate another arm of the business and make it all work together. “The main plus is that Apogee can offer virtually everything needed to glaze a building, all the way down to the install,” he says. “The competition will have to work harder, but then again in a slowing economy that was going to have to happen anyway. Tubelite is now much stronger then they were before the deal, and if Apogee expands them, it will force everyone else to step up.” Perilstein also says Tubelite’s customers will have to get comfortable with the fact they are buying from a competitor since Tubelite has a sister company, Harmon Inc., Eden Prairie, Minn., that installs. “The Tubelite acquisition will greatly benefit our service group whose primary business is entrances and storefront installations,” says Tom Niepokoj, vice of president of contract sales for Harmon. “Relative to contract group, we look forward to establishing Tubelite as a preferred supplier for the entrances and storefronts, which are commonly a part of our exterior curtain wall packages.” Apogee is the parent company of Wausau Window and Wall Systems, Wausau, Wis., and Niepokoj said he believes the purchase should enhance Wausau’s metals product offerings since the company currently doesn’t offer entrances and storefronts. “[The acquisition] enables both Wausau and Tubelite to provide our customers with complimentary products and a more complete fenestration solution,” says Rick Marshall, president of Wausau Window and Wall Systems. The current Tubelite management team with “extensive industry expertise and experience” will remain in place, Huffer said in the release.

—ByMatt Slovick, editor-in-chief, Glass MagazineShare this article:

Source: http://www.glassmagazine.com/news-item/commercial/apogee-extends-architectural-product-offeringsAuthor:

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