Apogee Extends Architectural Product Offerings With Purchase Of Tubelite Inc.
Apogee Enterprises, Inc. announced that it has purchased 100 percent
of the stock of Michigan-based Tubelite Inc., which fabricates
aluminum storefront, entrance and curtainwall products for the U.S.
commercial construction industry, for approximately $44 million (plus
or minus closing adjustments). Apogee provides distinctive value-added
glass solutions for the architectural and picture framing industries.
"The purchase of Tubelite, with annual revenues of approximately $60
million, is part of Apogee's strategy to grow its presence in
architectural markets," said Russell Huffer, Apogee chairman and chief
executive officer. "Tubelite brings a new, high-quality product line
to Apogee -- storefront and entrance products. The market for
storefront and entrance products, which are part of every commercial
construction project, is estimated to be more than $1 billion.
These products are usually purchased and installed by the same glazing
subcontractor that installs curtainwall and windows, two core product
lines currently offered by Apogee companies.
"We expect the Tubelite business, which has operating margins
consistent with our architectural segment, to be accretive to Apogee's
earnings in fiscal 2009," said Huffer. "We are pleased that the current
Tubelite management team, with its extensive industry expertise and
experience, will continue with Apogee to lead Tubelite to even greater
levels of performance."
"We're pleased to be joining a financially-strong, market leader that
we've known for a long time," said Ken Werbowy, Tubelite president.
"For many years, we've worked closely with Apogee's Linetec company,
which applies paint and anodized finishes to Tubelite's extrusions,
and are happy to be securing our relationship with a finisher known
for quality services and quick lead times.
"We're excited to become a member of Apogee's portfolio of
architectural companies, which are also known for their leading
brands, quality products and on-time services," said Werbowy. "We look
forward to working with the other Apogee architectural businesses to
further strengthen and grow our market position." Apogee funded the
acquisition from its existing revolving credit facility.
Source: GlassOnWeb
