Quanex Spins Off Building Products Business
Following a strategic review announced earlier this year, Quanex Corp. will spin-off its building products business as a stand-alone company. The new Quanex Building Products includes window and door industry suppliers Mikron Industries, Truseal Technologies and Homeshield.
The structural change is not expected to affect the day-to-day operations of these companies, notes Gus Coppola, Truseal president. “Let me assure you that customers will not see any change in their relationship with Truseal as we transition to the new structure,” he says. “You can expect this to be a seamless process that ensures customers will continue to receive the same high-quality products and service that they have come to expect from us. Looking ahead, we are very excited about what this change in structure means for Quanex Building Products. As a company concentrating purely on the Building Products space, we will be even more focused on bringing customers new and value-added products and enhancing customer service levels. We will also have the financial strength to ensure that we can weather various market cycles and continue to grow our business in attractive ways within the residential construction and remodeling markets.”
“We spent considerable time evaluating strategic alternatives and have determined this is the best course of action, as the businesses will benefit from greater strategic focus and capital flexibility, offer exciting opportunities for employees, and deliver compelling value for shareholders,” says Raymond A. Jean, Quanex chairman and CEO. “As we have said previously, our vehicular products and building products businesses have different capital costs, processes, products and end markets, and we have concluded that these businesses will be better positioned for success as separate companies.”
According to a slide presentation presented to shareholders and now posted to the company’s Web site, the new Quanex Building Products will aim to “expand [its] residential footprint,” adding new products such as solar panel components and composite window profiles, as well as expanding existing product lines, which currently include Mikron’s PVC profiles, Homeshield’s screens, grilles and door thresholds and Truseal’s IG spacer systems.
The company also plans to pursue “fenestration adjacencies” including exterior residential building products like roofing, siding, decking and railings, and interior products like venting, cabinets and stairs.
The new Quanex Building Products also plans to look at more integrated marketing programs, such as blending Truseal’s new Enviro-Sealed program to Mikron’s offerings, it is noted.
The transaction is expected to close in the first quarter of 2008. The new Quanex Building Products will be listed on the New York Stock Exchange.