Cornerstone Building Brands Announces Divestiture of its Coil Coatings Business for $500 Million
Cornerstone Building Brands, Inc. (“Cornerstone Building Brands” or the “Company”), the largest manufacturer of exterior building products in North America, announced today that it has entered into a definitive agreement to sell its coil coatings business to BlueScope Steel Limited (“BlueScope”) in an all-cash transaction for $500 million, subject to customary adjustments. The transaction includes products sold under the Metal Coaters and Metal Prep brands.
In connection with the transaction, BlueScope and the Company will enter into long-term supply agreements to secure continued supply of light gauge coil coating and painted hot roll steel at favorable service levels, reaffirming Cornerstone Building Brands as a preferred solutions provider for metal buildings and roofing.
“Our key value creation levers are integral to advancing our strategy towards profitable growth,” said Rose Lee, President and Chief Executive Officer. “As part of our expansive innovation engine lever, we look to partner with companies with complementary capabilities creating greater opportunities. We are excited to expand our relationship with BlueScope, who has been a customer and supplier of ours for many years and is well-positioned to take the coil coatings business even further. We will continue to focus on investing in our core growth markets and driving value through our primary selling channels.”
Under the terms of the agreement, the Company will sell seven manufacturing facilities and transfer approximately 570 employees from Cornerstone Building Brands to BlueScope.
Financial results for the coil coatings business are reported in the Company’s Commercial segment. For the twelve months ended December 31, 2021, the coil coatings business had net sales of approximately $214.9 million.
The transaction is expected to close in 2022, subject to customary closing conditions, including regulatory approvals.
Rothschild & Co served as the exclusive financial advisor, Sullivan & Cromwell LLP served as legal counsel, and Alvarez & Marsal Transaction Advisory Group, LLC served as accounting advisor to Cornerstone Building Brands for this transaction.
About Cornerstone Building Brands
Cornerstone Building Brands is the largest manufacturer of exterior building products for residential and low-rise non-residential buildings in North America. Headquartered in Cary, N.C., we serve residential and commercial customers across the new construction and repair and remodel markets. Our market-leading portfolio of products spans vinyl windows, vinyl siding, stone veneer, 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. Corporate stewardship and environmental, social and governance (ESG) responsibility are deeply embedded in our culture, and we are committed to contributing positively to the communities where we live, work and play. For more information, visit us at www.cornerstonebuildingbrands.com.
Tina Beskind – Vice President Finance & Investor Relations – email@example.com – (866) 419-0042
Source: Cornerstone Building Brands, Inc.