Kearney, Mo.-based Ply Gem Industries Inc. is acquiring AWC Holding Co. and its subsidiaries in a $120 million cash transaction from Mayfield Heights, Ohio-based Linsalata Capital Partners.
Ply Gem will own the rights to Alenco-brand vinyl and aluminum windows and doors, and the manufacturing facilities where Alenco products are made in Bryan, Texas; Peachtree City, Ga.; and a brand-new plant in Phoenix. AWC is based in Bryan.
A combination of debt and equity will finance the deal, according to a news release.
The deal was in conjunction with Ply Gem's private equity sponsor, New York-based Caxton-Iseman Capital Inc., which acquired Ply Gem for $570 million in early 2004.
Business developments related to Ply Gem's August 2004 acquisition of MW Manufacturers Inc. were the motivating factor in the new transaction, said Lee Meyer, Ply Gem's president and chief executive officer, in a Feb. 7 telephone interview.
``Within our MW business, we have a number of large customers who are growing nationally,'' Meyer said. ``They have asked us to support them as they grow and as they move into new geographies.
``We need to be able to provide two things: a footprint from the standpoint of having facilities that can support geographical expansion, and in some of the markets they're going into, there's a need for some aluminum product to support their growth.''
And Ply Gem gets new cost and site synergies as well, Meyer said.
Ply Gem operates composite and vinyl extrusion sites in York, Neb.; Kearney; Rocky Mount, Va.; Fair Bluff, N.C.; Martinsburg, W.Va.; and Jasper, Tenn. The company makes and fabricates windows at plants in Toledo, Ohio; Hammonton, N.J.; Sarver, Pa.; Fayettesville, N.C.; Calgary, Alberta; and Tupelo, Miss. Ply Gem also owns a metalworking shop in Valencia, Pa.
Ply Gem companies also manufacture vinyl siding and fence.
According to the 2005 Plastics News' ranking of North American pipe, profile and tubing extruders, Ply Gem ranked No. 12, with 2004 extrusion sales of $324.7 million and total corporate sales of $626.6 million.
While a wholly owned subsidiary of Ply Gem, Alenco will continue to operate as a mostly autonomous outfit, Meyer said. There will be no job losses or management shake-up as a result of the transaction, he said.
Ply Gem will continue to grow, whether it be organically or by strategic acquisition, Meyer said.
``If there are appropriate acquisitions that fit strategically, those will always be considered,'' he said, adding that Ply Gem is particular about the purchase investments it makes.