Building materials and infrastructure manufacturer Gibraltar Industries on Monday announced an agreement to acquire fellow building products provider OmniMax International in a deal worth $1.335 billion.
Gibraltar officials said that the addition of OmniMax, a leading residential roofing accessories and rainware manufacturer, would accelerate its push into residential building products. OmniMax expects to post adjusted net sales of $565 million this year, and Gibraltar’s residential business is expected to account for more than 80% of its overall revenue following completion of the deal.
“In getting to know the OmniMax team, it’s clear we both share a commitment to high-quality responsive service, and we look forward to welcoming them to the team,” Gibraltar Chairman and CEO Bill Bosway said in a statement. “Together, we will deliver greater value for our customers and to Gibraltar’s shareholders as we leverage business processes and systems to accelerate growth, generate strong cash performance, and continue to be a leader in the industry.”
Under the proposed deal, Gibraltar would acquire all outstanding equity interests of OmniMax from private equity firm Strategic Value Partners and its affiliates. The purchase has been unanimously approved by Gibraltar’s board and it does not require shareholder approval.
The transaction is expected to close in the first half of next year.
“We see this next step as an opportunity to continue strengthening the value we deliver to customers together with Gibraltar,” said OmniMax CEO John Krause.
