SOUTH JORDAN, UTAH (Dec. 20, 12:15 p.m. ET) — A subsidiary of South Jordan-based Headwaters Inc. has agreed to purchase most assets of Kleer Lumber Inc. of Westfield, Mass., for about $43 million.
Kleer Lumber makes synthetic-wood cellular PVC trim board and moulding and decking products. Headwaters' light building products segment designs, makes and markets siding accessories — often of polypropylene — for residential repair and remodeling and new residential construction applications.
The Tapco International Corp. unit of Headwaters entered into the asset purchase agreement with Kleer Lumber, Louis H. Price, Walter F. Valentine and Jo-Anne G. Price on Dec. 14 with an anticipated Dec. 31 closing. The final price is subject to a working capital adjustment.
Kleer Lumber's proprietary TruEdge technology seals edges and improves trim-board performance and appearance. Manufacturing, research and development occur in Westfield.
Headwaters intends to add the Kleer Lumber products to its national distribution network. Currently, Kleer distribution focuses on independent lumber yards and home-improvement centers in the Northeast and mid-Atlantic regions.
For the fiscal year ended Sept. 30, Headwaters lost $62.2 million on sales of $632.8 million. The light building products segment accounted for about 54 percent of the total with sales of $339.6 million to wholesale and retail distributors, contractors and other users of building products.
Headwaters' shares trade on the New York Stock Exchange. On Dec. 18, Headwaters began a registered offering of up to 10 million shares.