Andersen Corp. will sell a large window and door division to Ply Gem for $190 million.
The sale, announced Tuesday, is set to close in the fourth quarter and involves Andersen's hollow-vinyl window and patio door business and the Silver Line and American Craftsman brands that sell in Home Depot and specialty lumber shops.
As part of the deal, the 70-year-old North Carolina-based Ply Gem will take over four Andersen manufacturing plants that employ 4,000 workers and generate about $440 million in annual revenue. The plants are located in Lansing, Ill.; Marion, Ohio; North Brunswick, N.J., and Lithia Springs, Ga.
The divestiture is large, representing 15 percent of Andersen's revenue and a third of its workforce. The privately owned Andersen has nearly $3 billion in annual revenue and 12,000 employees in Europe and North America, including Minnesota facilities in Bayport, Oak Park Heights, Cottage Grove and North Branch.
Jay Lund, chairman and CEO of the Bayport-based door and window giant, said in a statement that the division sale to Ply Gem is part of Andersen's "broader strategy to sharpen our focus on our Andersen, Renewal by Andersen and specialty brands."
The company will continue "significant investments" to its fast growing Fibrex engineered composite products, he said.
As for the division sale, Lund said the unit "will have continued growth opportunities under Ply Gem's stewardship."
Ply Gem Chairman and CEO Gary Robinette noted that Silver Line and American Craftsman are trusted brands that have been around for 60 years. "Ply Gem is excited to add them to our existing portfolio of quality window products."
Ply Gem specializes in residential building products such as siding, roofing, windows, doors, shutters and gutters.
The sale to Ply Gem represents the latest of several moves by Andersen. In May, Andersen announced a $40 million expansion of its window extrusion factory in Bayport to meet growing customer demand.
In November, it acquired Fenêtres MQ Inc., a Quebec-based luxury window and door manufacturer with 70 people and factories in Sainte-Agathe-des-Monts, Quebec, and near Venice, Italy.
In 2015, Andersen spent $45 million expanding its North Branch and Cottage Grove factories to accommodate the firm's growing window replacement business.
In 2014, Andersen expanded its Bayport manufacturing plant, adding 100 new workers there to build Andersen's 100 Series products, which are the company's lower-priced windows and doors.