AGC to Sell North American Glass Business to Cardinal Industries

In what could be deemed an industry-changing transaction, Cardinal Glass Industries, of Eden Prairie, Minn., has signed a contract to acquire the U.S. assets of AGC Glass operations in Churchill, Tenn., Abingdon, Va., and Spring Hill, Kan. The value of the transaction will be approximately $450 million USD and is subject to regulatory review and approval. AGC, headquartered in Japan, says the earliest closing date 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.”

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.

This acquisition follows news in May that Cardinal was expanding its Durant, Okla., float glass location, which currently operates in more than 700,000 square feet and is getting an additional 70,000 square feet. It recently installed a new Glasstech tempering oven, which is expected to double the plant’s current tempering capacity.

*The financial information was converted from Japanese Yen to U.S. dollars on June 15, 2021.

Kingspan Light + Air to Acquire Major Industries Inc.

Kingspan Light + Air (KLA), a provider of daylighting products and division of Kingspan Group PLC, has signed a definitive agreement to acquire Major Industries Inc.

“Kingspan Light + Air aims to be the global leader in daylighting and natural ventilation,” says Bill Hogan, KLA president of the Americas. “This acquisition allows us to enhance the solutions we offer to our customers, expand the adoption of daylight in the built environment and continue our growth in North America. We’re thrilled to welcome the Major Industries team into the Kingspan Light + Air organization.”

In a letter sent to customers, Hogan noted that both KLA and Major will continue to operate as independent companies for the foreseeable future. “As such, it’s business as usual — all existing and quoted orders will remain unchanged, and you will not experience any interruption to your business as a result of this acquisition.”

Jeff Voight, vice president of operations at Major Industries, added, “Joining Kingspan Light + Air will allow us to accelerate our growth and reach more customers by highlighting the benefits of daylighting.”

No brands are expected to merge nor are any changes anticipated for employees.

This isn’t Kingspan’s first acquisition in the daylighting industry. The company previously acquired CPI Daylighting in 2018.

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