Volume 46, Issue 1 - January-February 2011

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Quanex Building Products to Acquire Edgetech I.G.

Quanex Building Products Corp. announced on January 31 that it had signed a definitive agreement with Lauren International to acquire subsidiary Edgetech I.G. Inc. for $107 million in an all cash transaction. Closing will take place immediately upon conclusion of applicable governmental regulatory approval.

Quanex is a manufacturer of engineered materials, components and systems that has served the U.S. residential door and window markets. The company’s other subsidiaries include Nichols Homeshield, a producer of window screens; Colonial Craft, a supplier of window grilles; Truseal, a supplier of spacer systems; and Mikron, a producer of vinyl and composite window profiles.

Edgetech president Mike Hovan told USGlass that Lauren International has been looking for a buyer for the company that would better be able to allow the warm-edge spacer manufacturer to grow “to the extent that we believe it can.” He added, “It wasn’t an active strategy.”

Edgetech’s involvement in the commercial market is one characteristic that made the acquisition attractive for Quanex.

“Edgetech will allow us and be the facilitator to expand into the commercial market,” David Petratis, chairperson and chief executive officer of Quanex, told USGlass. “Quanex has some great capabilities in our vinyl portfolio that can help commercial customers, and the joining together helps us to get in front of those specifying engineers.”

Edgetech’s international presence are another potential advantage. “It was an important part of the evolution of Quanex that we develop internationally,” Petratis said.

Hovan said a number of factors made Quanex an attractive buyer. “Probably the largest piece was the real alignment of how Quanex goes to market and how they run their business … there was a very direct alignment of our core values … That’s what we were looking for, somebody who has, frankly, the muscle to help grow the business to what we think it can be…”

Petratis noted that discussions had been ongoing for much of 2010. He also said that the acquisition must be approved by the Federal Trade Commission—typically in 90 to 120 days—before employee changes can be discussed.

Edgetech will be part of Quanex’s Engineered Products Group, which already includes Truseal. Petratis said Quanex expects the combined strength of these two companies will lead to advances around energy-efficiency. “We believe the envelope can be pushed and when you bring [together] the butyl-based technologies, single-edge technologies of Truseal and the foam-based, dual-sealed capabilities of Edgetech, we think those minds will help push that envelope,” he added.
www.quanex.com
www.edgetechig.com


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