Cornerstone Building Brands to Acquire Cascade Windows, Deepens Residential Product Offering

Rhea-AI Summary

Cornerstone Building Brands (NYSE: CNR) has announced an agreement to acquire Cascade Windows for $245 million. Cascade, a top manufacturer of energy-efficient vinyl windows and doors, serves the residential construction and remodeling markets. The acquisition aims to enhance Cornerstone's market presence on the West Coast and improve its tailored solutions offerings. Cascade reported approximately $160 million in sales over the past twelve months. The deal is expected to close in Q3 2021, pending regulatory approval, and will be funded using cash on hand.

Positive

• Acquisition of Cascade Windows aligns with Cornerstone's strategy to penetrate the residential windows market.
• Expected synergies from purchasing and manufacturing optimization.
• Opportunity for margin expansion and revenue growth.

Negative

• None.

Cornerstone Building Brands, Inc. (NYSE: CNR) (the “Company”), the largest manufacturer of exterior building products in North America, has reached an agreement to acquire Cascade Windows (“Cascade”) for a cash purchase price of $245 million. Cascade is a leading independent manufacturer of energy-efficient vinyl windows and doors serving the residential new construction and repair and remodel markets. Headquartered in Spokane Valley, Washington, Cascade has approximately 800 employees at six manufacturing and three distribution locations across the West and Pacific Northwest.

"Cascade is an excellent strategic fit for our Company and advances our strategy to grow in the large, deep residential windows market,” said James S. Metcalf, Chairman and Chief Executive Officer. “Additionally, the acquisition expands our manufacturing presence across the rapidly growing west coast region and enhances our tailored solutions offering for our customers. I look forward to welcoming our new teammates from Cascade to the Cornerstone Building Brands family.”

Cornerstone Building Brands expects the transaction to be accretive through purchasing and manufacturing optimization synergies, margin expansion and revenue growth opportunities. Cascade generated approximately $160 million in sales during the trailing twelve months ended May 2021. The transaction, subject to regulatory approval and customary closing conditions, is expected to be funded with cash on hand and close in the third quarter of 2021.

About Cornerstone Building Brands

Cornerstone Building Brands is the largest manufacturer of exterior building products for residential and low-rise non-residential buildings in North America. Headquartered in Cary, N.C., we serve residential and commercial customers across the new construction and repair and remodel markets. Our market leading portfolio of products spans vinyl windows, vinyl siding, stone veneer, insulated metal panels, metal roofing, metal wall systems and metal accessories. Cornerstone Building Brands’ broad, multichannel distribution platform and expansive national footprint includes more than 20,000 employees at manufacturing, distribution and office locations throughout North America. Corporate stewardship and environmental, social and governance (ESG) responsibility are deeply embedded in our culture, and we are committed to contributing positively to the communities where we live, work and play. For more information, visit us at www.cornerstonebuildingbrands.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20210802005170/en/

FAQ

What is the acquisition value of Cascade Windows by Cornerstone Building Brands?

The acquisition value of Cascade Windows is $245 million.

When is the acquisition of Cascade Windows expected to close?

The acquisition is expected to close in the third quarter of 2021, subject to regulatory approval.

How much sales did Cascade Windows generate in the past year?

Cascade Windows generated approximately $160 million in sales during the trailing twelve months ended May 2021.

What strategic benefits does Cornerstone Building Brands expect from this acquisition?

Cornerstone expects benefits such as enhanced market presence on the West Coast, purchasing and manufacturing optimization synergies, and potential revenue growth.

What will Cornerstone Building Brands use to fund the Cascade acquisition?

The acquisition will be funded with cash on hand.