Ply Gem Industries Inc. has acquired extruder and fabricator MW Manufacturers Inc. in a $320 million cash deal from investment group Investcorp of New York.
The acquisition beefs up Ply Gem's vinyl window and patio door offerings in new construction, said Lee Meyer, president and chief executive officer of the Kearney, Mo.-based company.
``I see the growth in vinyl products,'' Meyer said of the North American window market in a July 28 telephone interview. ``MW is a very strong regional competitor. They've got a great customer platform, very good customer relationships, so they're very attractive in that regard.''
MW, based in Rocky Mount, Va., will complement the repair and remodeling business of Great Lakes Window Inc., Ply Gem's fabrication subsidiary in Toledo, Ohio. MW has a presence in the South Atlantic and mid-Atlantic regions.
The transaction, announced July 27, is to close by the end of August. Financing will be arranged by UBS Securities LLC, Deutsche Bank Securities Inc. and JP Morgan Securities Inc., officials said.
The MW management team will stay intact and its members will become shareholders of Ply Gem, officials said. MW operates its vinyl profile extrusion facility in Rocky Mount as Lineal Technologies. The firm has fabrication sites in Rocky Mount and Hammonton, N.J.; a woodcutting facility in Fayetteville, N.C.; and a regional distribution and fabrication site in Tupelo, Miss. It markets its products under MW Windows, Patriot Vinyl Windows and Twinseal Vinyl Windows brand names.
New York private equity firm Caxton-Iseman Capital Inc. earlier this year acquired Ply Gem in a $570 million deal from building products firm Nortek Inc. of Providence, R.I.
Ply Gem operates composite and vinyl extrusion sites in York, Neb.; Kearney; Fairbluff, N.C.; Martinsburg, W.Va.; and Jasper, Tenn.
Ply Gem just completed capital improvements, including the addition of extruders to its fence operations. Officials would not disclose details.
``Our investment in Ply Gem is off to a great start and this transaction is an important step toward achieving our long-term objectives,'' said Robert Ferris, managing director of Caxton-Iseman, in a news release.
``The combination of Ply Gem and MW Manufacturers will enable us to capitalize on attractive market opportunities and provide us with a great platform to accelerate our growth in the windows segment, both organically and by acquisition.''
Ply Gem ranked No. 11 in Plastics News' recent listing of North American pipe, profile and tubing extruders, with 2003 extrusion sales of $308 million and total corporate sales of $526 million.
MW Manufacturers reported $250 million in sales for the 12 months ended June 30, with 2,500 employees.