Mergers & Acquisitions

Arconic Initiates Sale Process of BCS Unit, Includes Kawneer

Arconic announced that it is seeking a new owner for its Building and Construction Systems (BCS) business, which includes Kawneer Co. Inc., Reynobond and Reynolux.

The Arconic website details these brands, as well as Arconic Wheels, as being part of the transportation and construction segment. This segment had revenue of $562 million, an in-crease of 12 percent year-over-year with a segment operating profit of $97 million. These profit levels were $26 million higher than the previous year and the company cited higher volumes in commercial transportation and building and construction for the increase.

According to the announcement, the company is targeting completion of a strategic review in the third quarter 2018. Arconic’s Investor Day, which will include the output of the strategic review and associated actions, is expected to be held in November 2018.

In a letter sent to customers, Diana Perreiah, president of Arconic Building and Construction Systems, writes “Obviously, we are at the very beginning of the process, but I wanted to let you know that our commitment to you, our valued customer, remains unchanged by this news. For our team, it’s business as usual and we will continue our focus on delivering for our customers through continued investments, innovation and service.”

In 2016 Alcoa separated into two companies, with one company retaining the Alcoa name and the other—under which Kawneer operates—being called Arconic.

PGT Innovations Buys Western Window Systems

PGT Innovations (PGTI) has acquired Arizona-based Western Window Systems for $360 million. The transaction will create a combined company that’s expected to generate approximately $706 million to $732 million in net sales.

Following the close of the transaction, Western Window Systems will become a wholly owned subsidiary of PGTI. Western Window Systems will continue to operate and manufacture products as a separate brand within PGTI. PGTI will retain its headquarters in Florida, and the combined company will maintain manufacturing operations in Arizona.

“We are excited to add Western Window Systems to the PGT Innovations family of brands,” says Jeff Jackson, president and CEO of PGTI. “This transaction unites two highly complementary businesses to create a national leader in the premium window and door space, with an expanded product portfolio tailored to provide significant benefits for our collective customers. Western Window Systems delivers growth by disrupting industry norms and adopting non-traditional approaches to contemporary windows and doors systems. With a developed footprint across the South and West, we believe the combined company will be well positioned to drive profitable, sustained growth, including opportunities to introduce our respective products to each other’s customer base. We believe this transaction will accelerate our ability to enhance value creation for our shareholders.”

PGT Innovations says expanding outside of its home base of Florida is an important component of its strategic roadmap for growth. With the addition of Western Window Systems, PGTI will gain access to growing markets throughout the western United States, including California, Texas, Arizona, Nevada, Colorado, Oregon, Washing-ton and Hawaii.

“PGT Innovations is an organization whose values and culture align with our own,” says Scott Gates, president and CEO of Western Window Systems. He will join the executive leadership team as senior vice president of PGTI and president of Western Window Systems. The other members of Western Window Systems’ leadership are expected to be retained as well. “PGT Innovations’ enviable understanding of, and sales into, the repair and re-model market provides a great opportunity for collaboration to service our customers’ total business needs and the needs of new dealer customers who have a focused presence in that segment. We look forward to working closely with Jeff and the PGT Innovations leadership team to continue our focus on innovation and excellence as part of a more diversified company that we believe will be even stronger.”

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