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Trex Company Announces Sale of Its Commercial Products Business
Rhea-AI Impact
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Rhea-AI Summary
Trex Company, Inc. (NYSE:TREX) has announced the sale of Trex Commercial Products, Inc. to Sightline Commercial Solutions, effective December 30, 2022. This divestiture reflects Trex's focus on its core outdoor living strategy, dedicating resources to accelerating composite usage over wood. Trex Commercial had generated $35.1 million in sales during the first nine months of 2022, comprising 3.8% of Trex's consolidated net sales, but incurred a net loss of $2.4 million. The existing staff at Trex Commercial will retain employment under the new company.
Positive
The divestiture allows Trex to focus on profitable growth in outdoor living products.
Trex Commercial's innovative products contributed to its reputation in major sporting venues.
Negative
Trex Commercial incurred a net loss of $2.4 million for the nine months ended September 30, 2022.
COMPANY RESOURCES TO FOCUS ON GROWTH OPPORTUNITIES IN OUTDOOR LIVING
WINCHESTER, Va.--(BUSINESS WIRE)--
Trex Company, Inc. (NYSE:TREX), the world’s #1 brand of high-performance, low-maintenance and eco-friendly composite decking, railing and outdoor living products today announced the sale of substantially all of the assets of its wholly-owned subsidiary, Trex Commercial Products, Inc. (Trex Commercial) to Minnesota-based Sightline Commercial Solutions, LLC. The details of this transaction will be filed in Trex’s Current Report on Form 8-K with the U.S. Securities and Exchange Commission.
Bryan Fairbanks, President and CEO, commented, “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. 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. I am pleased to report that current Trex Commercial staff will be offered employment at the new company.
“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. 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,” concluded Fairbanks.
The sale of Trex Commercial’s assets closed on December 30, 2022. For the nine months ended September 30, 2022, the Trex Commercial segment had sales of $35.1 million, 3.8% of the Company’s consolidated net sales, and incurred a net loss of $2.4 million.
About Trex Company
Trex Company is the world’s largest manufacturer of high-performance, wood-alternative decking and railing, with more than 30 years of product experience. The #1 brand in outdoor living is proud to have been named one of 2022’s 50 Best U.S. Manufacturers by Industry Week and to have made Forbes’ 2021 List of America’s Best Mid-Sized Companies. Stocked in more than 6,700 retail locations worldwide, Trex outdoor living products offer a wide range of style options with fewer ongoing maintenance requirements than wood, as well as a truly environmentally responsible choice. For more information, visit trex.com. You also can follow Trex on LinkedIn (https://www.linkedin.com/company/trex-company/), You also can follow Trex on Twitter (@Trex_Company), Instagram (@trexcompany) Pinterest (trexcompany), or Houzz (trex-company-inc), “like” Trex on Facebook, or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).
