Quanex (NYSE: NX) is buying privately-held cabinets manufacturer Woodcraft Industries for $248.5 million in cash. The buyer is funding the acquisition through cash on hand and debt.
Woodcraft makes wooden doors, frames and other parts for kitchen and bathroom cabinets. The St. Cloud, Minnesota-based target has 13 manufacturing facilities along with four distribution centers across North America. Quanex expects Woodcraft to add about $240 million in annual revenue.
Building products deals have been on the rise in 2015, as the U.S. housing market continues to recover. Quanex expects the kitchen and bath cabinet industry to grow 7 percent annually. Some other deals in 2015 include: High Road Capital Partners’ purchase of floor maker Cali Bamboo LLC; Masonite International Corp.’s (NYSE: DOOR) deal for doorkit manufacturer National Hickman; and Summit Materials Inc. (NYSE: SUM) adding gravel pit operator LeGrand Johnson Construction Co.
Wells Fargo Securities and Gardere Wynne Sewell LLP are advising Quanex.