Apogee picks up commercial window maker EFCO
Apogee Enterprises Inc. (Nasdaq: APOG) has reached a deal to acquire all of EFCO Corp., a manufacturer of windows and curtain walls, from Pella Corp for approximately $195 million. The deal aligns with Apogee’s growth strategy, structuring the target as an independent operating unit under the buyer.
EFCO is a U.S. distributor of architectural aluminum windows, curtainwalls, and storefront entrance systems for the commercial construction industry. The Des Moines, Iowa-based target was founded in 1951 and generates more than $250 million in revenue annually. EFCO has additional manufacturing facilities in Missouri, Illinois and Virginia. Pella Corp. has owned the company since 2007.
“Our acquisition of EFCO 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,” states Apogee CEO Joseph Puishys. “EFCO operates in a space we know and structurally has similar operations to those across the Apogee businesses.”
Apogee, headquartered in Minneapolis, is a maker of glass and metal materials for the architectural and picture framing markets. The deal for EFCO is expected to create between $10 million and $15 million in cost and operational savings by year 2020. Apogee is funding the deal from cash and its credit facility.
Makers of window and glass materials have been hot targets in the middle market. Related acquisitions include: CenterOak’s deal to buy windows manufacturer Cascade Windows Inc. from Altamont Capital Partners; Vitro S.A.B. de C.V.’s buying the flat glass manufacturing and glass coatings operations of PPG (NYSE: PPG) for $750 million; Altus Capital’s purchasing of GED Integrated Solutions, a window installation-equipment maker; Aviation Industry Corp of China bought windows and doors parts maker Henniges Automotive Inc.; Sierra Pacific Industries’ acquiring private equity-backed Hurd Windows and Doors; and Nautic Partners LLC’s completed deal to buy Custom Window Systems Inc. Harris William & Co. is serving as financial adviser Pella Corp. on the sale of EFCO.