G. Inc. for $107.0 million in an all cash transaction. Closing will take place immediately upon conclusion of applicable governmental regulatory approval. The acquisition is expected to be accretive in year one, and additional information will be disclosed at closing.
Edgetech I.G. is headquartered in Cambridge, Ohio, and has 3 manufacturing facilities (U.S./United Kingdom/Germany) that produce and market a full line of insulating glass spacer systems for window and door customers in North America and abroad. Edgetech’s products separate and seal double and triple pane glass within a window frame and its products further act as a thermal barrier that conserves energy. It will be part of Quanex’s Engineered Products Group.
“I am pleased to announce our pending acquisition of Edgetech, a technological leader of insulating glass spacer systems for the window and door industry,” said David Petratis, chairman and chief executive officer of Quanex. “The acquisition of Edgetech will complement our efforts to provide our customers with the broadest range of high quality components, products, systems and services. The vast majority of windows manufactured today feature double or triple insulating glass, and with window production set to rise as the housing and remodeling markets recover, the long-term outlook for the business is excellent. Acquiring Edgetech will allow us to better serve our growing base of large and regional customers and will further accelerate our international growth as they have a solid market presence overseas. We are excited about the prospects of developing the next generation of energy efficient spacer systems through the combination of Edgetech and Truseal’s disparate technologies. This is a great example of the type of acquisition we will make as we seek to profitably grow Quanex while at the same time providing a better value proposition to our customers,” said Petratis.
“Quanex first entered the window and door market in 1989 with the acquisition of Nichols Homeshield,” Petratis said. “Homeshield at the time was, and remains today, one of the largest producers of finished window screens. In 2002, we purchased Colonial Craft, a supplier of window grilles. Then in 2003, we acquired Truseal, a supplier of window spacer systems. In 2004, we acquired Mikron, a leading producer of vinyl and composite window profiles. The acquisition of Edgetech will complement our ability to better serve our window and door customers with industry leading products and services and further establishes Quanex as a leading supplier of energy efficient components and systems.”
Quanex Building Products Corporation is an industry-leading manufacturer of engineered materials, components and systems serving the U.S. residential window and door markets. It is an ROIC-driven company that grows shareholder returns through a combination of organic growth via new products and new programs, and strategic acquisitions. The Company is listed on the New York Stock Exchange under the symbol NX. For further information visit the Company’s website at www.quanex.com.
Quanex, Edgetech Execs Optimistic Following Acquisition Announcement
February 1, 2011 - Quanex Building Products Corp. yesterday announced it has signed a definitive agreement with Lauren International to acquire Edgetech I.G. Inc. for $107 million in an all-cash transaction, and executives at both companies say they’re optimistic about what this merger of technology and expertise will mean for the industry.
Edgetech president Mike Hovan told www.dwmmag.com this afternoon that Edgetech parent company Lauren International has been looking for a buyer for the company that would better be able to allow the warm-edge spacer manufacturer to grow. “Lauren International … came to the realization that a parent with a little bit more capability would be in a better position to allow Edgetech to continue to grow to the extent that we believe it can. It wasn’t an active strategy, it’s just been something that’s been in the backs of the minds of different people in Lauren International,” he said. “The opportunity arose, we started talking and we are where we’re at today.”
Quanex Building Products Corp. is a manufacturer of engineered materials, components and systems primarily serving the U.S. residential door and window markets. Edgetech’s involvement in the commercial marketplace is but one characteristic that made the acquisition attractive for Quanex.
“Edgetech will allow us and be the facilitator to expand into the commercial market,” David Petratis, chairperson and chief executive officer of Quanex added in the exclusive interview with DWM magazine”Quanex has some great capabilities in our vinyl portfolio that can help commercial customers, and the joining together helps us to get in front of those specifying engineers. It’s one of the attractive things that we believe help benefits both teams.”
Edgetech’s international presence, including facilities in the United Kingdom and Germany, are another potential advantage for its new parent. “It was an important part of the evolution of Quanex that we develop internationally and the merger brings us strength,” Petratis said. “They’ve got some exciting international expansion and we want to continue to build on that momentum.”
Hovan said a number of factors made Quanex an attractive buyer, among them, “The fact that they were in the same industry and understand the business was a big piece of it. Secondly, and probably the largest piece, was the real alignment of how Quanex goes to market and how they run their business compared to how we run our business; there was a very direct alignment of our core values as both a company and as individuals within the companies that we’ve had the pleasure of meeting. That’s what we were looking for, somebody who has, frankly, the muscle to help grow the business to what we think it can be…”
Petratis noted that discussions have been ongoing for much of 2010 and that Quanex is looking forward to the growth potential that this acquisition offers. “We’ve come to agreement with Edgetech and we look at this from a growth standpoint. A lot of headroom for growth,” he said.
Petratis said that the acquisition must be approved by the Federal Trade Commission – typically in 90 to 120 days – before employee changes can be discussed. On the topic, he simply commented, “We’re going to build on the people and capabilities that we’ve got. We think one of the attractive elements of Edgetech were the strengths of the leadership and the people that have made up the business.”
Edgetech employees were notified this morning about the acquisition. “We started with our employees here as soon as the press release went out, as it did for Quanex before the markets opened,” Hovan said. “We’ve tried to be as upfront and responsive as we can be in getting the message out … and I’d say for the most part the feedback on the employee side has been positive. You can imagine that employees are nervous and it’s the fear of the unknown and what that might mean, but I think once we explained why and they had a chance to hear who Quanex is, I think the mood’s been very, very positive.”
Both companies also are actively reaching out to customers to field questions about the announcement. In calling and writing customers, Hovan said he has found, “The message coming back so far is I would say somewhere between cautiously optimistic and very positive. I think people see value in both companies, in what we both bring to the marketplace and I think they inherently see the benefit of what we can collectively do and offer to our customer base.”
Edgetech will be part of Quanex’s Engineered Products Group; already a part of that group is Truseal. Petratis said Quanex expects the combined strength of these two companies “advances the technical capabilities, especially around energy-efficiency. We believe the envelope can be pushed and when you bring [together] the butyl-based technologies, single-edge technologies of Truseal and the foam-based, dual-sealed capabilities of Edgetech, we think those minds will help push that envelope,” he added.
“I think if you start looking at all the potential opportunities and bringing together the technologies and people and the expertise that both companies have in energy-efficient products … you come out with some pretty interesting potential in the future to help our customers grow,” Hovan said.
Or, as Petratis neatly summarizes: “Together we’re better.”
Edgetech Confident Following the News of Pending Acquisition by Quanex
February 7, 2011 - Following the recent news that Edgetech will be acquired by Quanex Building Products Corp., the management teams at both companies say they’re confident about the merger of technology and expertise. Mike Hovan, Edgetech’s President comments: “Edgetech has seen substantial growth in its long history but we were aware that for this level of ambitious growth to continue, we would need increased capability from our parent organisation. With this in mind, Lauren International, the parent company of Edgetech, began looking for a buyer with the necessary resources and expertise. We were looking for somebody who has, frankly, the muscle to help grow the business to its full potential.”
Quanex Building Products Corp Chairperson and Chief Executive Officer, David Petratis explains why the company wanted to acquire Edgetech: “Edgetech’s involvement in the global insulating glass market, and its manufacturing facilities in the UK and Germany made the deal attractive for Quanex. The next step is for the acquisition to receive the customary governmental approvals. Our plans call for us, to build on Edgetech’s people and capabilities that we are gaining in this pending transaction. Some of the attractive elements of Edgetech are the strengths of its leadership and the people that make up its business.”
Andy Jones, Managing Director for Edgetech UK and Europe GmbH adds: “Our employees worldwide have been notified of the pending acquisition by Quanex and the feedback from the teams has been positive. As you would expect, employees were a little nervous due to fear of the unknown, but once they heard who the new parent company would be and learned more about them, the mood has actually been extremely positive. Feedback from customers and suppliers alike has been very positive. I think they see the value of both companies, in what we both currently bring to the marketplace, and they inherently see the benefit of what we can collectively do and offer to our customer base.”
Mike concludes: “Once you start looking at all of the potential opportunities from combining the technologies, people and expertise that both companies offer, particularly in energy efficient products, you come out with some very interesting potential in the future that will help our customers grow.”
Quanex Building Products Corp. is a manufacturer of engineered materials, components and systems primarily serving the North American residential door and window market. Edgetech will be part of Quanex’s Engineered Products Group.