Investor Press Release
Quanex Building Products Announces Strategic Acquisition of HL Plastics
– Expands Quanex's Customer and Product Base in
– HL's Technical Expertise to Benefit Quanex's Vinyl Extrusion Business –
– Transaction Expected to be Accretive to Quanex Shareholders in 2016 –
HL is a world-class vinyl extruder backed by a tradition of innovation and quality, geographic reach across the
Key Strategic Benefits of the Combination
Expands Quanex's international presence at a beneficial and opportune time in the
Leverages Quanex's existing expertise in the
UKmarket obtained through its 2011 acquisition of Edgetech, a technological leader of insulating glass spacer systems for the window and door industry;
- Presents highly complementary product growth opportunities to existing HL customers in conservatory roofs, hardware, foam trim products and related categories; and,
- Adds HL's skilled vinyl extrusion expertise.
Key Financial Benefits of the Combination
Quanex shareholders will benefit from the addition of approximately
$100Mof enhanced revenue, as well as expected EPS accretion starting in 2016;
Conservative deal valuation does not include potential for additional value creation from synergy opportunities with
Edgetech, process and technology improvements and growth in new product categories; and,
- Transaction funded from existing cash + revolver.
Quanex has posted a presentation on its website at https://quanex.com/News-Room/News-Releases/Investors.aspx that provides a summary of the transaction's strategic rationale and financial benefits.
Forward Looking Statements
Statements that use the words "estimated," "expect," "could," "should," "believe," "will," "might," or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, future operating results of Quanex, the investments being made in our vinyl business, the future financial condition of Quanex, future uses of cash and other expenditures, expenses and tax rates, expectations relating to the Company's industry, and the Company's future growth, including revenue and EBITDA guidance. The statements set forth in this release are based on current expectations. Actual results or events may differ materially from this release. Factors that could impact future results may include, without limitation, the effect of both domestic and global economic conditions, the impact of competitive products and pricing, the availability and cost of raw materials, and customer demand. For a more complete discussion of factors that may affect the Company's future performance, please refer to the Company's Annual Report on Form 10-K for the fiscal year ended
An industry-leading manufacturer of engineered materials and components for building products sold to Original Equipment Manufacturers (OEMs), Quanex designs and produces energy-efficient window and door products, systems and solutions.
Employing top talent, developing forward-thinking technologies and solutions with an emphasis on energy efficiency and aesthetics, continuous improvement and integrity remain the cornerstones of Quanex's business as it positions itself for future growth in the building products market with a special emphasis on supplying innovative new products to the fenestration industry.
For more information visit www.quanex.com.
About HL Plastics
CONTACT: Financial Contact:
Marty Ketelaarmartin.firstname.lastname@example.org 713-877-5402 Media Contact: Jonathan Morgan Perry Street Communicationsjmorgan@perryst.com 214-965-9955