Apogee Enterprises Inc. has agreed to buy the stock of aluminum window maker EFCO Corp. from Pella Corp. for about $195 million, officials announced Monday
EFCO is a leading U.S. manufacturer of architectural aluminum window, curtain-wall, storefront and entrance systems for commercial construction projects. The Pella subsidiary is growing and generates about $250 million a year. Because it specializes in the less cyclical midsize and small commercial projects, it is expected to help broaden Apogee's offerings and help it grow in that area, officials said.
Apogee, which provides building glass and metal solutions for the architectural and picture framing industries, expects to close on the purchase of EFCO by the fall. Regulatory approval is needed.
"Our acquisition of EFCO will accelerate our growth strategies, and expand our presence in midsize commercial buildings, broaden our product offerings and increase our geographic presence across the United States," said Apogee CEO Joseph Puishys. "EFCO operates in a space we know and structurally has similar operations to those across the Apogee businesses. In addition, with its broad range of high-performance window, curtain-wall and storefront products, it rounds out the Apogee product offering."
He added that with the purchase, Apogee stands to see "significant margin enhancement opportunities" as it leverages scale, operation and supply chain synergies.
Puishys expects the acquisition to add to Apogee's before-tax earnings this fiscal year, excluding transaction costs.
"We expect to generate $10 million to $15 million in annual synergies and operational efficiencies by fiscal 2020," he said.
Dee DePass • 612-673-7725
