Quanex Building Products To Buy Woodcraft Industries For About $248.5 Mln

(RTTNews) - Quanex Building Products Corp. (NX), a supplier of window and door components, said it has agreed to acquire Woodcraft Industries for about $248.5 million in cash. Woodcraft Industries is a supplier of doors and components to leading original equipment manufacturers or OEMs in the kitchen and bathroom cabinet industry.

The transaction, expected to close in the fourth calendar quarter of 2015, will be funded with a combination of cash on-hand, a new asset-based revolving credit facility and a new term loan, each of which will be entered into prior to the closing of the acquisition.

The acquisition enables Quanex to expand into the $3 billion kitchen and bath cabinet component market and is expected to be accretive to Quanex's 2016 earnings per share and EBITDA margins.

Quanex expects Woodcraft to add $240 million in revenues at 13 percent EBITDA margins to Quanex's growing portfolio as an OEM component supplier in building products.

The current management team, led by President Dale Herbst, will continue to operate Woodcraft from its St. Cloud, Minnesota headquarters as a wholly-owned subsidiary of Quanex.