Azek Building Products Inc. is acquiring railing capacity to complement its fast-growing deck business, by agreeing to purchase Toronto-based Composatron Manufacturing Inc. for C$30 million (US$29.6 million).
Officials expect the deal to close in the first half of 2008.
Moosic, Pa.-based Azek acquired its growing deck business - formerly Procell Decking Systems - in early 2007 for US$54 million.
It would seem a good match, as Composatron has a railing line with colors designed to match the Azek palette. Composatron's products are marketed under the brand names Premier and Trademark.
Azek will gain two Toronto extrusion plants in the deal.
Officials said there are no planned layoffs as a result of the acquisition, though Azek could discontinue the manufacturing of Composatron's wood-plastic composite deck and fence board.
``When we looked at the business, we were looking at the railing, not the composite decking,'' said Azek President Ralph Bruno, in an interview at the International Builders' Show in Orlando. ``We'll be talking about what makes the most sense moving forward.''
Composatron officials could not be reached for comment.
The acquisition represents a departure from Azek's core processing technology - cellular PVC. Composatron's railing is an extruded vinyl and wood-flour composite with a coextruded PVC capstock.
Azek also used the builders' show, held Feb. 13-16, to launch its new tongue-and-groove porch flooring planks, made from the same flax-reinforced cellular PVC blend as its deck boards.
Bruno said that while the porch floor category will never approach the volume of decking, it still represents a growing segment of outdoor living products.
``Porches, from an architectural design perspective, are a hot portion of the home,'' he said. ``And they can be a huge maintenance problem if they're wood.''