Minneapolis-based Apogee Enterprises (NASDAQ: APOG ) is getting bigger.
On Tuesday, the maker of building- and picture-framing glass announced that it has successfully closed a deal to purchase 100% of the shares of Toronto-based Alumicor Limited, which makes aluminum frames for windows, storefronts, entrances, and curtainwalls products. Apogee bought the shares from private equity firm Fulcrum Capital Partners and six minority shareholders for a total purchase price of $52 million.
Commenting on the acquisition, Apogee CEO Joseph F. Puishys noted that "Alumicor ideally complements Apogee's growth strategies." Alumicor's customer base comprises primarily Canadian construction companies. Thus, said Puishys, the purchase "helps Apogee grow geographically by expanding our presence in the Canadian non-residential market, and will also contribute to growth through new product introductions."
Puishys put Alumicor's annual revenue stream at CAD$60 million, or approximately U.S. $57.4 million. The company earns operating margins consistent with Apogee's architectural framing systems segment (about 7.6% , and so Puishys says he expects Alumicor will add to Apogee's earnings in fiscal 2015.
This is Apogee's second acquisition of the year, following its purchase of a "custom window company in Colorado." Apogee did $728 million in sales over the past 12 months. Management projects that with sales from its two acquisitions added to its revenue stream, it is on track to reach $1 billion in revenues by the end of fiscal 2016.