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Apogee enters into agreement to aquire EFCO

Post Time:May 03,2017Classify:Company NewsView:139

Apogee announces agreement to acquire window company, EFCO Corporation, for $195 Million.



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Apogee Enterprises, Inc. (Nasdaq:APOG) announced today that it has entered into an agreement to acquire 100 percent of the stock of privately-held EFCO Corporation from Pella Corporation for approximately $195 million. EFCO is a leading U.S. manufacturer of architectural aluminum window, curtainwall, storefront and entrance systems for commercial construction projects. Apogee, which provides distinctive value-added glass and metal solutions for the architectural and picture framing industries, expects to close on the purchase of EFCO in the first half of fiscal 2018, pending regulatory approval.


“Our acquisition of EFCO will accelerate our growth strategies, and expand our presence in mid-size commercial buildings, broaden our product offerings and increase our geographic presence across the United States,” said Joseph F. Puishys, Apogee chief executive officer. “EFCO operates in a space we know and structurally has similar operations to those across the Apogee businesses. In addition, with its broad range of high-performance window, curtainwall, and storefront products, it rounds out the Apogee product offering. We also see significant margin enhancement opportunities as we leverage Apogee’s scale, operational excellence expertise and supply chain synergies that build on initiatives already being implemented by EFCO’s strong management team.


“EFCO is a growing and profitable company, with annual revenues of more than $250 million that are largely generated from less cyclical mid-size and small commercial projects, a target Apogee growth sector,” he said. “We expect this acquisition to generate cash and be accretive to Apogee’s EBITDA and earnings per share, excluding transaction costs, this fiscal year. We expect to generate $10 million to $15 million in annual synergies and operational efficiencies by fiscal 2020.”


EFCO’s management team will continue to lead the business following the acquisition close. “A leader in commercial construction products, Apogee is an ideal parent company for EFCO,” said Cameron McGinley, EFCO president. “We are pleased to be joining the Apogee family and look forward to working with Apogee to capitalize on product, market, and operational opportunities for EFCO.”


Added Puishys, “We are buying a great asset that can be even greater, and we expect EFCO will contribute to Apogee’s continued strong performance in the commercial construction industry. We are especially pleased that Cameron and his leadership team, who have cultivated a culture of quality, innovation, value and service consistent with Apogee and are driving strategies that are improving profitability, will continue to lead EFCO.”


Apogee is funding the EFCO acquisition from cash and its recently expanded credit facility. EFCO will be a ninth independent operating unit in the Apogee portfolio and reported as part of the architectural framing systems segment.

Source: www.glassonline.comAuthor: shangyi

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