Quanex Building Products to Acquire Edgetech
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,”
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.
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