Chicago-based Azek Co. has acquired Dahlonega, Ga.-based StruXure Outdoor Inc., a manufacturer of aluminum pergolas and cabanas, to broaden its product portfolio of composite and PVC decking, rail, trim and accessories.
The deal is expected to expand Azek's position in the outdoor living category, complement its other product lines and add $40 million to its bottom line in the remaining fiscal 2022 year.
With estimated sales of $580 million, Azek holds the No. 8 spot among North American pipe, profile and tubing extruders, according to Plastics News' latest ranking.
"Pergolas and cabanas are a nearly $1 billion market opportunity and StruXure, along with our TimberTech products, adds another element to homeowners' creation of beautiful, low maintenance, and sustainable outdoor living spaces," Azek CEO Jesse Singh said in a news release.
TimberTech decking is made of wood fiber and recycled polyethylene milk jugs, plastic wrap, shampoo and laundry detergent bottles while StruXure's existing product lines are made from up to 50 percent recycled aluminum.
The acquisition is expected to accelerate growth for both Azek and StruXure, which the release said posted net sales of about $50 million and adjusted earnings before interest, taxes, depreciation and amortization of about $15,000 in the 2021 calendar year.
"Because of the highly complementary nature of the two businesses, we expect StruXure's business to grow in-line or above the expected revenue growth rate of Azek's residential segment," Singh said. "We further intend to apply Azek's expertise in sourcing, operations, research and development, and material science to enhance StruXure's technology-forward product lines and deliver even more of the high quality outdoor living products customers have come to expect from us."
StruXure founder and CEO Scott Selzer said the company brings a strong brand to the Azek partnership.
"We believe that StruXure will achieve growth in ways we couldn't otherwise, particularly as we broaden our position with Azek's and TimberTech's existing loyal customer base and explore additional material conversion opportunities," Selzer said.
The acquisition was completed Dec. 29. Azek officials said they will share details during the February earnings call.