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Topics Mergers & Acquisitions, Construction, Windows & doors, Extrusion, Pipe/Profile/Tubing
KP Building Products Ltd. is close to acquiring substantially all of the assets of Farley Group Inc., a manufacturer of PVC and aluminum–hybrid windows and patio doors.
KP, a subsidiary of Kaycan Ltd., which is based in Montreal, signed a letter of intent to complete its second acquisition in about 18 months. The Farley sale is expected to close as soon as March 3.
“We are very excited with this pending acquisition” Lionel Dubrofsky, Kaycan Ltd.’s president, said in a statement. KP makes vinyl, aluminum and engineered siding, trim coil and rain carrying products. Adding Farley’s PVC windows and patio doors “will help us provide an unprecedented product mix and level of professional support,” he said.
With estimated sales of $205 million, KP ranks 18th among North American pipe, profile and tubing extruders, according to Plastics News’ latest ranking.
In October 2012, Kaycan acquired several facilities of Uniboard Inc., including three particleboard lines, one MDF line, five thermo-fused melamine lines, a resin plant, and two laminate flooring lines servicing primarily Canadian and northeastern and Midwestern U.S. markets.
Dubrofsky said at the time that acquisition brought together two major Quebec-based manufacturing companies with a wider range of products for both residential and commercial interior and exterior décor.
About the pending acquisition, he said, “The addition of Farley to our group of privately held companies will enable us to maintain our long-term focus on growth and our practice of reinvesting earnings back into our businesses.”
In explaining the long-term focus, Dubrofsky said KP ultimately wants to provide its customers with solutions for the whole home. “The acquisition of Farley brings us one step closer to realizing this goal.”
The Kaycan group of companies has more than 1,800 employees operating 16 manufacturing facilities in North America for a global market.