NCI Building Systems to acquire insulated panel supplier
NCI Building Systems has entered into a definitive agreement to purchase Metl-Span, a maker of insulated panels, from a subsidiary of BlueScope Steel North America Corp. The deal is valued at $145 million in cash.
Metl-Span, a leading manufacturer of insulated metal wall and roof panels for more than 40 years, operates five manufacturing facilities in the United States serving the nonresidential building products market. For the year ended Dec. 31, 2011, Metl-Span had estimated revenues of $170 million. The acquisition is subject to a number of closing conditions, including the expiration or termination of any applicable waiting period under the Hart Scott Rodino Act.
Norman Chambers, NCI’s chairman, president and CEO, said in a prepared statement: “The highly synergistic addition of Metl-Span’s products and capabilities will meaningfully enhance NCI’s diversification and expand NCI’s manufacturing footprint in the high-growth insulated metal panel sector, while also growing our customer base and distribution channels. The transaction … will strengthen our position as a leading fully integrated supplier to the nonresidential building products industry in North America, providing our customers a comprehensive suite of building products.”
In connection with the transaction, NCI will refinance its existing asset-based lending (ABL) facility and term loan, which were both set to mature in 2014. NCI has secured a new fully committed ABL and term loan that will be used, together with cash on hand, to fund the acquisition.
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Beacon Roofing swings to profit
Beacon Roofing Supply, the Peabody, Mass., distributor of roofing and other housing exterior materials, posted net sales of $395.1 million for its second fiscal quarter of 2012, a 33.4% increase over sales of $296.3 million in the same quarter in 2011. Existing market (organic) sales, which exclude branches acquired after the beginning of last year’s second quarter, increased 28.2%.
Net income for the second quarter, which ended March 31, was $3.1 million compared with a net loss of $6.2 million a year ago. The higher net income was due to the higher sales and gross margin rate, partially offset by the impact from higher operating expenses and a higher income tax provision compared to an income tax benefit in 2011.
In a prepared statement, Paul Isabella, the company’s president and CEO, said: "The positive momentum from our first quarter continued into our second quarter, and we finished with record results for the first half of fiscal 2012. Our results for the second quarter and first half significantly exceeded our expectations and most of our regions are on track for a very successful year. Once again, our company-wide residential and non-residential product sales in existing markets both showed double-digit percentage increases for the quarter, while our complementary product sales were up 7%.”
Warm winter conditions boosted roofing and exterior remodeling activities, Isabella said, especially residential re-roofing. “In addition, our roofing businesses continued to benefit from industry-wide price increases, which mostly occurred during the second half of last year,” he added.
With Beacon’s new credit facility and an improved balance sheet, “We are confident that we will add additional quality companies this year that fit our target acquisition profile,” Isabella said.
Deering Lumber acquires two units
Deering Lumber, the Biddeford, Maine-based pro dealer, has purchased two stores from New England Building Materials, according to a report in Wired Weekly, the newsletter of the Northeastern Retail Lumber Association (NRLA). Deering now operates four retail locations.
New England Building Materials filed for Chapter 11 bankruptcy protection and closed its three yards in Massachusetts in February, four months after shuttering yards in Springvale and Windham, Maine, and selling three mid-coast Maine branches to Hammond Lumber. Its remaining locations were a retail outlet in Sanford, along with a sawmill.
At the end of April, the Sanford showroom reopened under the Deering name, while the Springvale location is being remodeled in hopes of reopening in June. New England Building Materials will continue to operate its sawmill and sell products through Deering stores.
Originally called Lavalley Lumber, New England Building Materials started as a lumber mill in 1943 until 2009, when it purchased three Massachusetts yards from Stock Building Supply and became New England Building Materials.
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