Trex Co. Inc. has completed its acquisition of Stadium Consolidation LLC, a decorative rail maker based in Brooklyn Park, Minn., for $71.5 million.
Trex said it plans to use the deal to expand the reach of its composite decking products into SC's commercial markets.
The deal, which wrapped up Oct. 10, is the first major acquisition by Trex, a Winchester, Va.-based manufacturer of composite decking made from recycled polyethylene and sawdust.
SC designs and markets modular and architectural railing systems for offices, hotels and hospitals and multi-family projects as well as staging and seating systems for sports stadiums and theaters. That's an estimated $1 billion market, according to Trex officials, who say SC is on track to post $56 million in sales this year.
Trex has rail products, too, for its three brands of decking that are sold at price points of good, better and best, and the company website show it in many residential uses. Trex officials say the SC acquisition will help it grow in the commercial market as a subsidiary to be called Trex Commercial Products.
CEO James Cline said SC will broaden Trex's customer base with its good name recognition, long-standing relationships with leading architects and contractors, and staff with deep expertise.
“This transaction provides important end market diversification for Trex,” Cline said in a July 31 news release. “The acquisition expands our custom design and engineering capabilities and adds the contract architect and specifier communities as new channels for Trex.”
SC will maintain its operations and headquarters in Brooklyn Park, as well as its operation in Fort Hill, S.C.
