AZEK acquires StruXure Outdoor Inc.
The AZEK Company has increased its presence in the outdoor living category and announced that it has acquired StruXure Outdoor Inc. a designer and manufacturer of aluminum pergolas and cabanas.
The acquisition expands AZEK’s position in the broader outdoor living category and complements its existing portfolio, including TimberTech decking.
“We are excited to announce AZEK’s acquisition of StruXure as we expand into this natural market adjacency and continue to build leading positions across the large and growing outdoor living category,” Jesse Singh, CEO of The AZEK Company, said. “Pergolas and cabanas are a nearly $1 billion market opportunity and StruXure, along with our TimberTech products, adds another element to homeowners’ creation of beautiful, low maintenance, and sustainable outdoor living spaces.”
AZEK reports that StruXure delivered net sales of approximately $50 million. The financial terms of the acquisition were not disclosed.
“We believe this acquisition will leverage the collective strengths of both StruXure and TimberTech, enabling synergies that will provide our customers with a more complete outdoor living solution, while expanding StruXure’s margins over time and ultimately driving accelerated growth for both AZEK and StruXure,” Singh said.
Both of StruXure’s existing product lines are made from up to 50% recycled aluminum and support AZEK’s commitment to ESG stewardship and its strategy to accelerate the use of recycled material in the industry. In fiscal year 2021, AZEK used 500-million pounds of scrap and waste, approximately halfway to its goal of using one-billion pounds annually by the end of 2026.
“As custom deck builders, we’re long-time believers in both brands because of their unique differentiation, beauty, and functionality,” Mark King, owner of Infinite Decks in Minnesota said. “StruXure’s pergolas and cabanas are highly complementary to TimberTech, and perfectly complete the outdoor living spaces our customers desire most,” King added.
StruXure will operate as a wholly-owned subsidiary of The AZEK Company.
Scott Selzer, founder and CEO of StruXure, said, “We are proud to have built a company with a strong brand known for innovative, high-quality products, and we’re excited for this partnership with AZEK. We believe that StruXure will achieve growth in ways we couldn’t otherwise, particularly as we broaden our position with AZEK’s and TimberTech’s existing loyal customer base and explore additional material conversion opportunities.”
Selzer will continue to lead StruXure’s day-to-day operations. StruXure will become a part of AZEKS’s residential segment financial reporting.
AZEK estimates that StruXure will generate approximately $40 million of revenue for the remainder of the company’s fiscal 2022.
Based in Chicago, Ill. AZEK operates manufacturing facilities in Ohio, Pennsylvania, and Minnesota, and recently announced a new facility will open in Boise, Idaho.
StruXure Outdoor, Inc. is headquartered in Dahlonega, Ga. with manufacturing facilities in Georgia and Nevada.