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Cardinal Glass Industries, out of Eden Prairie, Minn., has signed a contract to acquire the assets of AGC Glass in Churchill, Tenn.; Abingdon, Va.; and Spring Hill, Kan. The value of the transaction will be approximately USD $450 million and is subject to regulatory review and approval.
AGC, headquartered in Japan, announced the earliest closing would be July 2021.
“Under the medium-term management policy, AGC plus-2023, announced in February this year, the company has strived to improve the profitability and asset efficiency of its architectural glass business, which have been designated as a priority,” reads a statement from AGC. “AGC concluded that it would create further growth opportunities by transferring to Cardinal Glass Industries. Cardinal has business trading experience with AGC in the past and is expected to make the most effective use of its assets and personnel.”
In its announcement, Cardinal says the deal lets it expand its float, coating, and tempering capacity allowing it to stay responsive to the needs of its expanding customer base.
“Our capital investment plan for these operations will allow us to sustain even higher volumes in a very tight North American glass market,” says Roger O’Shaughnessy, CEO of Cardinal Glass Industries.
The transaction is expected to generate a profit of approximately $227,075,000*, which is expected to be recorded as other income in the consolidated financial results for the third quarter of this fiscal year ending December 31.
*The financial information was converted from Japanese Yen to U.S. dollars on June 15, 2021.
Roger O’Shaughnessy has been carrying out the Cardinal Glass strategy with incredible success since the early 1970’s when I first met him.
Jerry Anderson (Ret President & Director of Apogee Enterprises )