MINNEAPOLIS, MN (December 21, 2007) – Apogee Enterprises, Inc. (Nasdaq:APOG) today announced that it has purchased 100 percent of the stock of Michigan-based Tubelite Inc., which fabricates aluminum storefront, entrance and curtainwall products for the U.S. commercial construction industry, for approximately $44 million (plus or minus closing adjustments). Apogee provides distinctive value-added glass solutions for the architectural and picture framing industries.
“The purchase of Tubelite, with annual revenues of approximately $60 million, is part of Apogee’s strategy to grow its presence in architectural markets,” said Russell Huffer, Apogee chairman and chief executive officer. “Tubelite brings a new, high-quality product line to Apogee – storefront and entrance products. The market for storefront and entrance products, which are part of every commercial construction project, is estimated to be more than $1 billion. These products are usually purchased and installed by the same glazing subcontractor that installs curtainwall and windows, two core product lines currently offered by Apogee companies.
“We expect the Tubelite business, which has operating margins consistent with our architectural segment, to be accretive to Apogee’s earnings in fiscal 2009,” said Huffer. “We are pleased that the current Tubelite management team, with its extensive industry expertise and experience, will continue with Apogee to lead Tubelite to even greater levels of performance.”
“We’re pleased to be joining a financially-strong, market leader that we’ve known for a long time,” said Ken Werbowy, Tubelite president. “For many years, we’ve worked closely with Apogee’s Linetec company, which applies paint and anodized finishes to Tubelite’s extrusions, and are happy to be securing our relationship with a finisher known for quality services and quick lead times.
“We’re excited to become a member of Apogee’s portfolio of architectural companies, which are also known for their leading brands, quality products and on-time services,” said Werbowy. “We look forward to working with the other Apogee architectural businesses to further strengthen and grow our market position.”
Apogee funded the acquisition from its existing revolving credit facility....[View full article]