Atrium Companies Inc. Announces Acquisition of Florida Window Manufacturer

Atrium Companies Inc. announced that it has completed the acquisition of substantially all of the assets of Kinco Ltd., a Florida limited partnership, for a purchase price of $27.1 million, including $26.6 million in cash, $.4 million in assumed liabilities and $.1 million in the form of warrants to purchase Atrium Corporation common stock. The transaction was effected through a newly-formed subsidiary, Atrium Windows and Doors of Florida LLC, a Delaware corporation, and was funded through a combination of $20 million of additional term loan borrowings, borrowings under the Company's revolving credit and accounts receivable securitization facilities and cash on hand.

Kinco, based in Jacksonville, Fla., manufactures, distributes and installs aluminum and vinyl windows for the new home construction and replacement markets in Florida, Georgia and South Carolina. Through its 14 company-owned distribution centers, Kinco sells to large production builders, mid-size regional builders and replacement contractors.

"Two of our key strategic initiatives have been to increase our presence in Florida and to increase our installation capability in each of our primary markets," said Jeff L. Hull, Atrium's chairman, president and chief executive officer. "Florida is currently the most active homebuilding market in the country and is expected to have approximately 10 percent of all projected housing starts in the United States over the next five years. With the acquisition of Kinco and the second quarter acquisition of Robico, Florida becomes our third largest revenue producing state behind Texas and California. In addition, the acquisition of Kinco and the August acquisition of West Coast Custom enable us to install our products in Florida and Southern California, markets which are extremely strong and critical to our future growth."

Hull added that Kinco will remain a stand-alone and autonomous operating unit of Atrium and the existing management team will continue to oversee the business.