The vinyl siding consolidation game continues, with Alcoa Building Products announcing March 8 that it is buying Gentek Building Products.
The deal will give Alcoa Building Products, which ranks third in sales among North American vinyl siding extruders, a foothold in the Canadian market. The company currently does not have a presence in Canada, said Joyce Saltzman, a spokeswoman for parent company Alcoa Inc.
"This will support our focus on growth," Saltzman said in a March 8 telephone interview from Alcoa Inc.'s Pittsburgh headquarters. "The acquisition will just solidify Alcoa's leading position."
Alcoa Building Products is based in Sidney, Ohio. President Gary Acinapura said the acquisition supports the unit's objective of profitably doubling sales volume in the next three years.
"We are excited about an opportunity that so closely aligns with our overall strategy," he said in a news release.
Gentek is based in Cleveland and is owned by Toronto-based Genstar Capital Corp. Alcoa and Genstar announced March 8 they had signed a letter of intent. Terms were not disclosed.
Alcoa is publicly traded, while Genstar is a privately held equity investment firm.
The two companies expect to close the deal by midyear, Saltzman said.
Alcoa Building Products posted 1999 sales of $270 million. Gentek posted 2000 sales of $223 million.
Alcoa Building Products operates five manufacturing facilities in the United States: in Sidney; Stuarts Draft, Va.; Princeville, Ill.; Gaffney, S.C.; and Denison, Texas. Gentek operates five manufacturing facilities in North America: Lambeth and Burlington, Ontario; Pointe Claire, Quebec; Woodbridge, N.J.; and Richmond, Va.
Gentek also operates 19 distribution centers in Canada and 13 in the United States, Saltzman said. Known for its Alcoa and Mastic brands of vinyl siding, Acinapura said Alcoa intends to continue to support Gentek's Gentek and Revere brands.
