Private Equity Group to Acquire International Aluminum
International Aluminum Corp., parent of International Window Corp. and U.S. Aluminum, has entered into an agreement to be acquired by an affiliate of Genstar Capital LLC. The San Francisco-based private equity group is offering $53 per share for the publicly traded International Aluminum in a transaction valued at approximately $228 million.
International Aluminum has unanimously approved the agreement, and is recommending approval by International Aluminum’s shareholders. Additionally, Cornelius Vanderstar, International Aluminum’s chairman and largest shareholder, has entered into an agreement to vote his shares in favor of the acquisition by Genstar. Vanderstar owns approximately 40 percent of the outstanding stock of International Aluminum, the company reports.
“This transaction offers shareholders the ability to realize substantial value from their investments in International Aluminum, and is a strong affirmation of the position we have built in our markets,” says Ronald L. Rudy, president and CEO. “We look forward to working with Genstar to build on this position.”
“We believe International Aluminum is a leader in its industry and we are excited about partnering with the company to continue its growth,” says Darren J. Gold, managing director for Genstar Capital. “Genstar has a very successful track record of investing in building products companies like International Aluminum. We hope to leverage this experience to continue the company’s long history of success.” The private equity group was previously involved in the building products industry through its 1994 purchase of Gentek Building Products from Alcan Aluminum.
Genstar sold the manufacturer and distributor of vinyl siding and windows, as well as other metal building products to Alside parent, Associated Materials, in 2003.
A Window & Door Top 100 manufacturer, International Aluminum reported sales of $281 million for its 2006 fiscal year. Its International Window unit operates plants in California and Arizona producing aluminum and vinyl windows and doors for the residential market. It is also the parent of U.S. Aluminum, which manufactures curtain walls, window walls, slope glazed systems, storefront framing, entrance doors and frames, and commercial windows. The company also operates Raco Interiors, which produces commercial interior doors and frames, and International Extrusion, an aluminum extruding business.
The transaction is expected to close during the second quarter of 2007. Following completion, International Aluminum’s stock will be de-listed from the New York Stock Exchange and will no longer trade publicly. International Aluminum’s headquarters will remain in Monterey Park, CA.