Apogee Enterprises has entered into an agreement to acquire 100 percent of the stock of privately-held EFCO Corp. from Pella Corp. The purchase is for approximately $195 million, the company announced Monday.
EFCO is a U.S. manufacturer of architectural aluminum window, curtainwall, storefront and entrance systems for commercial construction projects. Apogee expects to close on the purchase of EFCO in the first half of fiscal 2018, pending regulatory approval.
Apogee CEO Joseph F. Puishys told investors on a conference call Monday the acquisition “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.”
He said EFCO’s historic and replacement window products will fit in well with Apogee’s retrofit initiative. In terms of geography, he said the company “has a better position in the Western and Southeastern U.S.,” including a few metropolitan areas “where they have a substantially greater presence than us.”
According to Apogee, EFCO has annual revenues of more than $250 million that are largely generated from mid-size and small commercial projects. “This positions us well in a more reliable revenue stream that is not subjected to the market fluctuations we see in the U.S. economy,” said Puishys.
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 EFCO president Cameron McGinley in a statement. “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.”
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.