Acquisition Strengthens AZEK’s Position as
the Innovation Leader in the Broader Outdoor Living
Category
The AZEK Company Inc. (NYSE: AZEK) ("AZEK" or the “Company”),
the industry-leading manufacturer of beautiful, low-maintenance and
environmentally sustainable outdoor living products, including
TimberTech® decking, rail and accessories, and Versatex® and AZEK
Trim®, today announced its acquisition of StruXure Outdoor, Inc.
(“StruXure”), a designer and manufacturer of high quality and
innovative aluminum pergolas and cabanas. The acquisition expands
AZEK’s position in the broader outdoor living category and
complements its already strong portfolio of products that benefit
from AZEK’s expertise in material conversion and the industry’s
long-term secular growth trends.
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“We are excited to announce AZEK’s acquisition of StruXure as we
expand into this natural market adjacency and continue to build
leading positions across the large and growing outdoor living
category,” Jesse Singh, CEO of The AZEK Company, said. “Pergolas
and cabanas are a nearly $1 billion market opportunity and
StruXure, along with our TimberTech products, adds another element
to homeowners’ creation of beautiful, low maintenance, and
sustainable outdoor living spaces.”
StruXure delivered net sales of approximately $50 million and
mid-teens Adjusted EBITDA margins in calendar year 2021, and was
named to the Inc. 5000 Fastest-Growing Private Companies list for
the seventh consecutive year. “We believe this acquisition will
leverage the collective strengths of both StruXure and TimberTech,
enabling synergies that will provide our customers with a more
complete outdoor living solution, while expanding StruXure’s
margins over time and ultimately driving accelerated growth for
both AZEK and StruXure,” Singh said. “Because of the highly
complementary nature of the two businesses, we expect StruXure’s
business to grow in-line or above the expected revenue growth rate
of AZEK’s Residential segment. We further intend to apply AZEK’s
expertise in sourcing, operations, research and development, and
material science to enhance StruXure’s technology-forward product
lines and deliver even more of the high quality outdoor living
products customers have come to expect from us,” Singh
continued.
This acquisition opens up new customer segments and enables
increased cross-marketing and cross-selling to AZEK’s existing
partners and customers looking to transform outdoor living spaces
with beautiful, low maintenance, and sustainable solutions.
StruXure’s innovative, smart pergolas and cabanas are easy to
maintain and won’t fade, rot or decay like traditional wood
pergolas or structures. The products are highly complementary to
TimberTech’s existing outdoor living products, drive wood
conversion, and are already being installed together by contractors
across North America.
“As custom deck builders, we’re long-time believers in both
brands because of their unique differentiation, beauty and
functionality,” Mark King, owner of Infinite Decks in Minnesota
said. “StruXure’s pergolas and cabanas are highly complementary to
TimberTech, and perfectly complete the outdoor living spaces our
customers desire most,” King added.
Scott Selzer, Founder & CEO of StruXure, said, “We are proud
to have built a company with a strong brand known for innovative,
high-quality products, and we’re excited for this partnership with
AZEK. We believe that StruXure will achieve growth in ways we
couldn’t otherwise, particularly as we broaden our position with
AZEK’s and TimberTech’s existing loyal customer base and explore
additional material conversion opportunities.”
Both of StruXure’s existing product lines are made from up to
50% recycled aluminum and support AZEK’s commitment to ESG
stewardship and its strategy to accelerate the use of recycled
material in the industry. In fiscal year 2021, AZEK used
500-million pounds of scrap and waste, approximately halfway to its
goal of using one-billion pounds annually by the end of 2026.
StruXure will operate as a wholly owned subsidiary of The AZEK
Company and Selzer will continue to lead StruXure’s day-to-day
operations. StruXure will become a part of the Company’s
Residential segment financial reporting. AZEK estimates that
StruXure will generate approximately $40 million of revenue for the
remainder of AZEK’s fiscal 2022. Given the seasonality of
StruXure’s business, contributions to fiscal Q2 are expected to
reflect seasonally lower revenue and break-even profitability.
Details of the acquisition, which was completed on Wednesday,
December 29, 2021, will be shared at AZEK’s earnings call in early
February.
About The AZEK® Company
The AZEK Company Inc. (NYSE: AZEK) is the industry-leading
designer and manufacturer of beautiful, low maintenance and
environmentally sustainable outdoor living products, including
TimberTech® decking and Versatex® and AZEK Trim®. Consistently
recognized as the market leader in innovation, quality and
aesthetics, products across AZEK’s portfolio are made from up to
100% recycled material and primarily replace wood on the outside of
homes, providing a long-lasting, eco-friendly, and stylish solution
to consumers. Leveraging the talents of its approximately 2,000
employees and the strength of relationships across its value chain,
The AZEK Company is committed to accelerating the use of recycled
material in the manufacturing of its innovative products, keeping
millions of pounds of waste out of landfills each year, and
revolutionizing the industry to create a more sustainable future.
Headquartered in Chicago, Illinois, the company operates
manufacturing facilities in Ohio, Pennsylvania and Minnesota, and
recently announced a new facility will open in Boise, Idaho. For
additional information, please visit azekco.com.
About StruXure Outdoor, Inc.
StruXure Outdoor, Inc. is the premier designer and manufacturer
of luxury pivoting-louver smart pergolas and cabanas. The company’s
mission is to change the way people live by bringing the indoors
out through sustainable architectural automation and innovation.
Pergola X, StruXure’s signature product, is the highest-quality
smart pergola system on the market. Made of extruded aluminum, it
is functional, durable, and beautiful. This marks StruXure’s
seventh consecutive year ranking on the Inc. 5000 list of
fastest-growing privately held companies in the United States.
Headquartered in Dahlonega, Georgia, the company operates
manufacturing facilities in Georgia and Nevada. For additional
information, please visit https://struxure.com/.
Cautionary Note Regarding Forward-Looking Statements
This release contains or refers to certain forward-looking
statements within the meaning of the federal securities laws and
subject to the "safe harbor" protections thereunder.
Forward-looking statements are statements about future events and
are based on our current expectations. These forward-looking
statements may be identified by the words “believe,” “hope,”
"expect," "intend," "will," "target," “anticipate,” "goal" and
similar expressions. Our forward-looking statements include,
without limitation, statements with respect to the anticipated
growth and financial performance of StruXure, and the synergies and
other anticipated benefits to AZEK from the acquisition of
StruXure. The Company bases its forward-looking statements on
information available to it on the date of this release, and
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of changed
circumstances, new information, future events or otherwise, except
as may otherwise be required by law. Actual future events could
also differ materially due to numerous factors that involve
substantial known and unknown risks and uncertainties including,
among other things, the risks and uncertainties set forth under
"Risk Factors" and elsewhere in the Company's reports on Form 10-K
and Form 10-Q and the other risks and uncertainties discussed in
any subsequent reports that the Company files with the Securities
and Exchange Commission from time to time. Although we have
attempted to identify those material factors that could cause
actual results or events to differ from those described in such
forward-looking statements, there may be other factors that could
cause actual results or events to differ from those anticipated,
estimated or intended. Given these uncertainties, investors are
cautioned not to place undue reliance on our forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220104005423/en/
Investor Relations Contact: Amanda Cimaglia 312-809-1093
ir@azekco.com
Media Contact: Amy Widdowson (415) 819-2126
AZEKquestions@zenogroup.com
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