CARY, N.C., March 2, 2020 /PRNewswire/ -- Cornerstone
Building Brands, Inc. (NYSE: CNR) (the
"Company"), a leading North American manufacturer of
exterior building solutions, announced today that it has acquired
Kleary Masonry, Inc. ("Kleary"). Kleary is a leading installer of
manufactured stone veneer in Northern
California, further enhancing the Company's leading turnkey
stone veneer offering. Founded in 1959 and headquartered
in Sacramento, Kleary employs approximately 230
people, providing high quality workmanship in the Sacramento and Bay area for over three
generations.
"The acquisition of Kleary expands our value-added, turnkey
stone veneer solutions we offer to our customers," said James
S. Metcalf, Chairman and Chief Executive Officer. "Kleary is an
excellent strategic fit for our Company, enabling us to strengthen
our position in the fastest-growing segment of the residential
cladding market. We are also excited about the opportunities the
addition of Kleary brings across our builder and contractor
networks, in particular the potential to cross-sell our stone
cladding and installed services into our commercial buildings
business."
The acquisition was funded with cash on hand and through
borrowings under the Company's existing credit
facilities. Jeffrey S. Lee, Executive Vice President and Chief
Financial Officer, said, "We remain focused on driving value
through disciplined capital allocation. We expect this acquisition
will enhance our overall pro forma Adjusted EBITDA margins as a
Company and improve our net debt to LTM pro forma Adjusted EBITDA
ratio."
For the 12 months ended December 31,
2019, Kleary had sales of more than $40 million. The
Company expects Kleary results to be reported through the
Siding business segment.
About Cornerstone Building Brands
Cornerstone
Building Brands is a leading manufacturer of exterior building
products in North America.
Headquartered in Cary, North
Carolina, the Company serves residential and commercial
customers across new construction and the repair & remodel
markets. As the #1 manufacturer of windows, vinyl siding, insulated
metal panels, metal roofing and wall systems and metal accessories,
Cornerstone Building Brands combines a comprehensive portfolio of
products with an expansive national footprint that includes more
than 20,000 employees at manufacturing, distribution and office
locations throughout North
America. For more information, visit us
at www.cornerstonebuildingbrands.com.
Certain statements in this release (including statements
regarding the Company's estimates and expectations) that are not
historical in nature are "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995. In
particular, the statements regarding the expected financial impact
of the Kleary acquisition are forward-looking. The Company cautions
that actual results may differ materially from those projected or
implied in forward-looking statements due to a variety of important
factors, including: the inability to successfully integrate the
newly acquired business into the Company's operations or achieve
the expected synergies associated with the acquisition; and adverse
changes in the markets served by the newly acquired
business. Additional factors are discussed in the Company's
filings with the Securities and Exchange Commission, including the
Company's Annual Report on Form 10-K for the year
ended December 31, 2019, expected to be filed with the SEC on
March 3, 2020. Except as required by
the federal securities laws, the Company undertakes no obligation
to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise.
Contact Info:
Tina Beskid
Vice President of Finance & IR
Phone: 919-694-2781
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SOURCE Cornerstone Building Brands, Inc.