Quanex Building Products Corp. (Houston, TX), a global manufacturer of engineered materials and components for building products sold to OEMs, announced on June 16 that it has acquired HL Plastics Ltd. (Denby, UK), the fast-growing vinyl profile extruder, in an all-cash transaction valued at approximately $145 million.
Quanex designs and manufactures energy-efficient window and door products. HL Plastics designs and manufactures PVCu extrusions at its state-of-the-art facility in Denby, and has seen substantial growth, in no small part because of its Liniar range of lead-free PVCu windows, doors and conservatories launched in 2008, said a release from Quanex.
More than 85% of HL's revenue comes from the Liniar brand; the remaining revenue is generated from extrusions for fencing, decking, water retention barriers and related products, said Quanex.
According to Quanex, the acquisition of HL Plastics expands Quanex's international presence at a beneficial and opportune time in the UK housing market. It also leverages Quanex's existing expertise in the UK market obtained through its 2011 acquisition of Edgetech, a supplier of insulating glass spacer systems for the window and door industry. Additionally, the acquisition presents highly complementary product opportunities to existing HL customers in conservatory roofs, hardware, foam trim products and related categories.
HL Plastics CEO Roger Hartshorn commented on the acquisition: "Quanex enjoys a clear leadership position as a preeminent component supplier to the fenestration industry, and as such represents a logical and compelling strategic fit for HL at this beneficial inflection point in the UK housing market. I am excited for our team to join Quanex, and am confident that our employees and customers will benefit from the combination of our outstanding companies."
Bill Griffiths, Quanex Chairman, President and CEO, stated: "Quanex's growth strategy is predicated on improved profitability in our core businesses, as well as the acquisition of businesses that contribute proven technologies, products and enhanced scale. The acquisition of HL Plastics delivers on all fronts as it should contribute top- and bottom-line growth, an expanded presence in the favorable UK market and access to new, complementary product lines.
"Moreover, HL's existing leadership team has committed to remain in place, helping to ensure that Quanex benefits from HL's vinyl extrusion process and technology capabilities," said Griffiths.