Officials for Cornerstone Building Brands Inc. announced this week that the company acquired Prime Window Systems. The move expands Cornerstone’s “leadership position in highly-attractive residential markets,” said James S. Metcalf, chairperson and CEO, while also adding to the company’s manufacturing scale and opportunities in the Western region. Headquartered in Denver, Prime Window serves the new construction and replacement markets with vinyl doors and windows, generating approximately $60 million in sales in 2020. The Company has approximately 300 employees at its manufacturing locations in Colorado and Washington.

“The acquisition of Prime Window advances our strategy towards profitable growth and operational excellence,” Metcalf said. “We are joining forces with a well-recognized business and an established customer base that will strengthen our multi-channel offering.”

The company expects the transaction to be accretive through purchasing and manufacturing optimizations, margin expansion and revenue growth opportunities.

News of the acquisition follows a March 19 announcement by Cornerstone that the company planned to amend and refinance senior credit facilities, upsizing, amending and extending an exiting Term Loan B, while paying down existing 8.00% senior unsecured notes with cash from the balance sheet and proceeds from an upsized facility. The company sought to extend the maturity of its $611 million ABL credit facility to April 12, 2026, while extending the maturity of its $115 million revolving credit facility to April 12, 2026. Company officials said they intend to use a portion of the net proceeds from the upsized facility and available cash from the balance sheet to redeem in full existing 8.00% Senior Notes due 2026.

“These transactions are an integral part of our long-term strategy to reduce net debt leverage and strengthen the Company’s capital structure,” said executive vice president and CFO Jeff Lee. “We will continue to focus on driving value through the execution of our capital allocation priorities, which includes investments in the core business, margin enhancing growth investments, and debt pay down.”

The company announced completion of its debt refinancing and repayment plans April 15.

According to Cornerstone’s fourth-quarter 2020 results, the company delivered seven consecutive quarters of year-over-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin expansion in all segments, while improving cost structure by approximately $113 million over the prior year. Net operating cash flow for the year was reported at $308 million, marking a 34% improvement, while the company’s liquidity registered at $1.3 million.

In March, company officials reported they expect strong revenue growth in 2021 from the outlook for single-family housing. Net sales for the windows segment for fourth quarter 2020 registered at $511.6 million, marking an increase of 3.2% from the prior year quarter. The company is set to release its first-quarter results May 11.

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