Cornerstone Building Brands Announces Divestiture Of Roll-Up Sheet Door Business
Cary, NC - Cornerstone Building
Brands, Inc. (NYSE: CNR), manufacturer of exterior building products in North America, announces that it has entered into a definitive agreement to sell its Roll-up Sheet Door business to Janus International Group Inc. (NYSE: JBI) in a cash transaction
for $168 million, subject to customary adjustments. The transaction includes products sold under the DBCI brand and is expected to close in the third quarter of 2021, subject to customary closing conditions.
“This transaction unlocks immediate value by monetizing strong assets at an attractive multiple and continues to optimize our portfolio for sustainable growth,” said James S. Metcalf, Chairman and Chief Executive Officer. “We have further
strengthened our financial flexibility, which will enable us to strengthen the balance sheet and advance our long-term value creation with accretive growth opportunities.”
DBCI is a manufacturer of roll-up sheet doors and related products for both the commercial and self-storage markets. Under the terms of the agreement, the company will sell three manufacturing operations and one sales office. Approximately 240 employees
will be transferred from Cornerstone Building Brands to Janus.
Financial results for the DBCI business are reported in the Commercial segment. For the trailing twelve months ended April 3, 2021, DBCI generated approximately $85 million from sales to external and internal customers. During the same period, net sales
and Adjusted EBITDA1 of approximately $65 million and $14 million, respectively, would have been excluded from the Company’s results had the transaction closed prior to the beginning of the period. The Company expects post-tax transaction proceeds
of approximately $125 million will be used to pay down a portion of its secured credit facilities, to invest in organic growth and efficiency projects, and in strategic acquisitions.
About Cornerstone Building Brands
Cornerstone Building Brands manufactures exterior building products for residential and low-rise non-residential buildings in North America, serving residential and commercial customers across the new construction and repair and remodel markets.
Among others, the portfolio of products includes insulated metal panels, metal roofing, metal wall systems and metal accessories. Cornerstone Building Brands’ broad, multichannel distribution platform and expansive national footprint includes
more than 20,000 employees at manufacturing, distribution and office locations throughout North America. For more information, visit www.cornerstonebuildingbrands.com.