Trex sells commercial division
Trex, the wood-alternative decking giant, has sold its commercial business.
Minneapolis, Minn.-based Sightline Commerical Solutions, LLC is paying $8.25 million for Trex Commerical Products, Inc., according to a Trex Form 8-K filing with the U.S. Securities and Exchange Commission.
The Winchester, Va. composite decking manufacturer also estimated that it will recognize a loss on sale of approximately $13 million to $16 million after taxes.
The sale of Trex Commercial’s assets closed on Dec 30, 2022. For the nine months ended Sept. 30, 2022, the Trex Commercial segment had sales of $35.1 million, or 3.8% of the company’s consolidated net sales, and incurred a net loss of $2.4 million.
Sightline is a fabricator and global supplier of architectural railing, metal, glazing, and portable platform solutions.
“During our ownership of Trex Commercial, its products were installed in some of the largest and most prestigious sporting and entertainment venues in the country,” said Bryan Fairbanks, president and CEO of Trex. “Trex Commercial was also instrumental in helping the Company capitalize on the growing trend toward more modern, commercially inspired railing designs with the launch of our successful rod rail system, the new glass railing system, and numerous other innovations that will drive future value for Trex.”
Fairbanks noted that current Trex Commercial staff will be offered employment by Sightline.
In 2017, Trex acquired SC Railing — a manufacturer and supplier of the architectural railing. In December of that year, the company was rebranded as Trex Commerical Products. Now, Trex will sharpen its focus on the residential outdoor living category.
“The divestiture of the Trex Commercial segment reflects our decision to focus on driving the most profitable growth strategy for Trex and its shareholders through the execution of our outdoor living strategy,” Fairbanks added. “With the sale complete, we will dedicate our resources to accelerating conversion to composites from wood and further strengthen our leadership position in the outdoor living category.”
On Oct. 31, 2022, Trex reported total sales fell to $188 million in the third quarter compared to sales of $336 million for the third quarter of 2021. The company also reported a net income of $14 million for the third quarter compared to a net income of $74 million for the same period in the prior year.