What’s News July/August 2021August 20th, 2021 by Nathan Hobbs
Cardinal Expands to Capture Momentum in Residential Market
In what officials describe as a “very tight North American glass market,” Cardinal Glass Industries made several bold investments recently, which, according to company info, are aimed at bolstering its ability to meet high volumes of demand. In May the company announced an expansion of its float glass plant in Durant, Okla., where improvements include the installation of a new tempering furnace, as well as additional square footage. Weeks later, the company announced a deal to acquire the U.S.-based assets of Japanese company AGC Glass, including operations in Churchill, Tenn., Abingdon, Va., and Spring Hill, Kan. The approximately $450 million USD transaction is subject to regulatory review and approval. AGC, headquartered in Japan, announced the earliest sale closing would be July 2021. “Regarding the operations of the architectural glass business in North America, AGC has concluded that it will create further growth opportunities by transferring it to Cardinal Glass Industries who has business trading experience with AGC in the past and is expected to make the most effective use of AGC’s assets and personnel,” officials for AGC said in a notice to investors.
Officials for Cardinal say the acquisition will expand the company’s float, coating and tempering capacities, allowing it to stay responsive to the needs of an expanding customer base.
“Our capital investment plan for these operations will allow us to sustain even higher volumes in a very tight North American glass market,” said Roger O’Shaughnessy, CEO of Cardinal Glass Industries.
Meanwhile, the Durant facility, which primarily serves the residential market, currently utilizes more than 700,000 square feet, but will gain an additional 70,000 square feet. The investment follows a newly installed Glasstech tempering oven.
According to plant manager Shaun Banner, the need for expansion and new equipment in Durant reflects a growing housing market, which inflated the demand for tempered glass. The addition of a new tempering line will double the plant’s current capacity, Banner said.
The new line is expected to commence operations in mid-June, with full production in July.
MI Adding 90,000 Square Feet
MI Windows and Doors will add 90,000 square feet to its manufacturing facility in Gratz, Pa. The $27 million project adds two production lines for vinyl windows, an automated glass room and a new training center.
The company received a funding proposal from the Department of Community and Economic Development (DCED) for the project, including a $485,000 PA First Grant and $291,000 grant for workforce training. Pennsylvania Governor Tom Wolf heralded the move, including the company’s decision to increase the starting rate for its manufacturing employees. Officials for MI say increases for the starting rate of manufacturing employees were instated nationwide.
Power Home Remodeling Opens in Phoenix
Power Home Remodeling is opening a new office in Tempe, Ariz., marking its 17th U.S.-based location. The new 35,665-sq.-ft. space will be used to offer windows, roofing and attic insulation, officials said, with additional products to be added later in the year.
The company aims to create more than 100 jobs within the next 12 months.
Jeld-Wen Canada Expands, Upgrades Jeld-Wen of Canada, a subsidiary of Jeld-Wen Holding Inc., announced a multi-million-dollar investment in its Quebec-based manufacturing facilities. The Saint-Henri Quebec facility currently manufactures Jeld-Wen’s line of molded interior doors, as well as insulated steel doors. Jeld-Wen’s second facility, in St. Apollinaire, Quebec, is the manufacturing location for the company’s line of vinyl and hybrid windows. Officials said the investment includes the purchase of new automated manufacturing equipment as well as a footprint expansion in Saint-Henri that will enable the company to substantially increase production capacity.
“We are committed to supporting our customers and their growth,” said Robert Conway, Jeld-Wen of Canada’s vice president and general manager. “We have seen increased demand for our products nationwide and we are grateful for the overwhelming support of the Jeld-Wen brand in Canada.”
Wincore Windows and Doors Expands Creating New Jobs in Georgia
Wincore Windows and Doors, a manufacturer of vinyl windows and fiberglass entry doors, recently expanded its Swainsboro, Ga., manufacturing facilities by more than 100,000-square-feet. The addition increases production capabilities, officials said, initially adding an additional 100 job opportunities.
Wincore opened operations in the Swainsboro area in April of 2019, with a 75,000-square-foot manufacturing facility. Citing a sharp increase in demand for products, the company says it needed to expand manufacturing space and skilled workforce.
Jeld-Wen and Masonite to Pay $61.6 in Class Action Settlement
Door manufacturers Jeld-Wen Inc. and Masonite Corp. agreed to get their pens out recently, each stroking checks for $30.8 million ($61.6 million total), ending a class action lawsuit against the two companies. The final approval order and judgement was signed in June by U.S. District Judge John A. Gibney, completing a settlement agreement that was originally fi led August 31, 2020. The suit alleged that the two companies conspired to fi x prices, while holding approximately 85% of the market for certain interior doors.
Plaintiffs sought relief under the Sherman Act, as well as under various state antitrust and consumer protection laws, contending that Jeld-Wen’s and Masonite’s anti-competitive conduct drove up the prices they paid for interior molded door skins.
Consent Decree Ends Lead-Based Suit for Home Depot
A federal judge signed off on a consent decree, ending a lawsuit among the states of Utah, Rhode Island and Massachusetts, and Home Depot U.S.A. Inc., alleging that Home Depot violated certain provisions of the U.S. Environmental Protection Agency’s (EPA) Lead Renovation, Repair and Painting Rule (RRP). U.S. District Judge Mark Cohen, for the U.S. District Court for the Northern District of Georgia Atlanta Division, approved an agreement by the big box retailer
to pay $20.75 million, while implementing new check points and procedures to ensure the company adheres to requirements going forward.
The suit alleged that Home Depot, falsely changed statuses from “lead test required” to “negative.”
M&A In Brief
Bostik acquired Edge Adhesives Texas, a manufacturer of hot-melt adhesives and pressure sensitive adhesive tapes for residential construction. Officials said the move marks the latest in a strategy for “bolt-on acquisitions.” The deal is expected to close in second-quarter 2021.
Leaf Home Solutions, a North American direct-to-consumer provider of home solutions, announced it has completed the acquisition of Northwest Ohio’s Quillen Brothers Inc.
The acquisition marks the fifth direct-to-consumer business Leaf has acquired in the last year under its Leaf Home Enhancements subsidiary.
Builders FirstSource, Inc., a supplier of building materials and services, announced it will acquire Cornerstone Building Alliance SW LLC. Alliance is an independently operated supplier of building materials in Arizona, primarily serving the greater Phoenix, Tucson, and Prescott Valley metropolitan areas.
Vinyl Window Designs, a Canadian manufacturer of vinyl windows, entry doors and patio doors, acquired Vinylbilt Windows and Doors. The deal was finalized June 3, 2021. Terms of the transaction were not disclosed. Vinylbilt will continue to operate separately and independently as Vinylbilt, officials said.
Angeles Equity Partners LLC and Clearlake Capital Group L.P. announced they signed an agreement to sell American Construction Source (ACS) to US LBM. ACS is a lumber and building materials (LBM) distribution platform serving custom homebuilders, repair and remodel contractors, and do-it-yourself homeowners across the U.S. Financial terms of the transaction were not disclosed.
Assa Abloy acquired Salt Lake City-based SureLoc, a U.S.-based supplier of locks and associated hardware. The acquisition complements the company’s mechanical hardware portfolio, said Lucas Boselli, executive vice president and head of the Americas division and supports the company’s ambitions for growing its residential business in the U.S.
“This acquisition delivers on our strategy to strengthen our position in the mature markets through adding complementary products and solutions to our core business,” said Nico Delvaux, president and CEO of Assa Abloy.
Gallup Names DW Distribution Exceptional Workplace
DW Distribution Inc., a distributor of building materials and millwork products, received the 2021 Gallup Exceptional Workplace Award (GEWA), recognizing the company as one of “the most engaged workplace cultures in the world.” Gallup found that the company has shown exceptional resilience and support for employees amid the challenges of the COVID-19 pandemic, civil unrest and political polarization, officials said.
Fenestration Related Companies Recognized as Best for Diversity
Forbes magazine released its list of America’s Best Employers for Diversity, including numerous fenestration-related companies. Coming in at 264 out of 500 was door and window manufacturer Andersen Corp. Adhesives manufacturer Dow Inc. landed a spot at 377, while paint and coatings provider Sherwin Williams ranked 319 and construction materials provider SaintGobain came in at 262.
The magazine partnered with market research firm Statista to survey 50,000 U.S.-based employees, working for companies with at least 1,000 on payroll. The resulting list ranks the top 500 receiving the most recommendations. Other factors taken into account include the diversity of boards and executive ranks, and inclusion initiatives.
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