Masco Corp. has gobbled up three vinyl window firms in the United Kingdom as part of a $220 million acquisition spree.
The Taylor, Mich.-based building products firm bought extruder Duraflex Ltd. from Latium Group in the cash and stock deal, marking its move into the European market for vinyl window extrusions. Duraflex is based in Cheltenham, England, and is the third-largest window frame extruder in the United Kingdom, officials said. Vinyl windows account for about 65 percent of the $6.3 billion window market in the United Kingdom.
``This allows us to participate in a broader section of the market,'' said Samual Cypert, Masco's vice president of investor relations. ``It's an area that we're definitely interested in.''
The June 19 transaction also included Welsh fabricators Cambrian Windows Ltd. of Pembroke and Premier Manufacturing Ltd. of Caerphilly.
Officials expect a total of $200 million in sales for 2002 on an annualized basis for five acquired companies. The other two firms are not plastics-related.
Cypert would not disclose how many extrusion lines are included in the deal. Duraflex operates in three facilities with a total of 140,000 square feet in manufacturing, distribution and office space. The 150-employee firm produces lineals for Cambrian and Griffin Windows Ltd., a fabricator in Rhondda Valley, Wales, that Masco acquired last year.
Publicly held Masco made its move into domestic window extrusion last year with the acquisition of Milgard Manufacturing Inc. in Tacoma, Wash. Milgard Manufacturing reported $68 million in 2001 sales with 29 extrusion lines.
``We look for companies that have similar channels of distribution, similar customers that are in the home-improvement and building industry, and that have good management teams,'' Cypert said. ``They have to meet certain financial and growth criteria and we like for them to be leaders in their field.''
Masco reported 2001 sales of $8.3 billion.