Quanex Closes the TruSeal Technologies Inc. Acquisition; Acquisition Broadens Quanex's Door and Window Component Offering
December 31 2003 - 1:51PM
PR Newswire (US)
Quanex Closes the TruSeal Technologies Inc. Acquisition;
Acquisition Broadens Quanex's Door and Window Component Offering
HOUSTON, Dec. 31 /PRNewswire-FirstCall/ -- Quanex Corporation , an
industry-leading manufacturer of engineered materials and
components for the Vehicular Products and Building Products
markets, today announced the closing of the stock purchase of
TruSeal Technologies Inc., from Kirtland Capital Partners, for $113
million in cash. The Company financed the acquisition by borrowing
against its $310 million revolving credit facility. TruSeal
manufactures and markets a full line of patented and trademarked
flexible insulating glass spacer systems and sealants for vinyl,
aluminum and wood windows. The product separates and seals the
glass within a window frame and acts as a thermal barrier to
conserve energy and resist moisture. With approximately $80 million
in revenues and 300 employees, the acquisition will be accretive to
earnings in year one. The business will become part of Quanex's
Building Products segment. "TruSeal is a leading manufacturer in
their niche fenestration (door and window) market and the
acquisition compliments our efforts to provide our building product
customers with a broader range of high quality components and
products," stated Raymond Jean, chairman and chief executive
officer of Quanex. "Today, some 90% of all windows manufactured
feature insulating glass, and with window demand increasing faster
than new home starts, the outlook for this business is excellent.
TruSeal also provides a level of customer diversification for us as
they have a broad presence in the vinyl and aluminum window
markets, whereas Quanex's niche is primarily with the wood window
OEM's. Our purchase of TruSeal serves as an excellent example of
the type of acquisition we will make as we profitably grow Quanex's
core businesses," said Jean. Quanex Corporation, founded in 1927,
is based in Houston, Texas. For further information, visit the
Company's website at http://www.quanex.com/ or the TruSeal website
at http://www.truseal.com/ . Statements that use the words
"expect," "should," "will," "might," "gauge" or similar words
reflecting future expectations or beliefs are forward-looking
statements. The statements above are based on current expectations.
Actual results or events may differ materially from this release.
Factors that could impact future results may include, without
limitation, the effect of both domestic and global economic
conditions, the impact of competitive products and pricing, and the
availability and cost of raw materials. For a more complete
discussion of factors that may affect the Company's future
performance, please refer to the Company's most recent 10-K filing
(December 29, 2003) under the Securities Exchange Act of 1934, in
particular the sections titled, "Private Securities Litigation
Reform Act" contained therein. Contacts: Jeff Galow, 713/877-5327
Valerie Calvert, 713/877-5305
http://www.newscom.com/cgi-bin/prnh/20031231/QUANEXLOGO DATASOURCE:
Quanex Corporation CONTACT: Jeff Galow, +1-713-877-5327, or Valerie
Calvert, +1-713-877-5305, both of Quanex Corporation Web site:
http://www.quanex.com/ http://www.truseal.com/
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