Cornerstone Building Brands selling Insulated Metal Panels business
Cornerstone Building Brands announced today that it has entered into a definitive agreement to sell its Insulated Metal Panels (IMP) business to Nucor Insulated Panel Group Inc and certain of its subsidiaries (collectively, “Nucor”) in a cash transaction for $1 billion.
The transaction includes products sold under the Metl-Span and Centria brands and is expected to close in the second-half of 2021, subject to regulatory approval and other customary closing conditions.
“We believe this transaction creates immediate, substantial value for our shareholders and highlights the immense value that exists within the Cornerstone Building Brands portfolio,” said James Metcalf, chairman and CEO of Cornerstone Brands. “We have cultivated our IMP business into a market leader with strong assets. The IMP business is a better strategic fit with Nucor, who is well-positioned to take the business even further. We will continue to focus on investing in our core growth markets and driving value through our primary selling channels.”
The IMP business manufactures insulated metal panels in North America, a lightweight cladding solution servicing sub-sectors within the non-residential end market.
Under the terms of the agreement, the Cornerstone will sell seven manufacturing facilities, three offices, and a product innovation center, all located in North America.
Approximately 830 employees will be transferred from Cornerstone Building Brands to Nucor. The facilities and their employees will continue to operate in the ordinary course until closing, Cornerstone said.
In conjunction with the sale, Nucor and Cornerstone Building Brands will enter into a long-term supply agreement. This agreement will enable Cornerstone to continue offering IMP products as part of its metal buildings and components product offerings.
The IMP business contributed approximately $335 million of the Cornerstone’s sales for the trailing 12 months ended April 3, 2021, reported through its commercial segment. The Company expects post-tax transaction proceeds of approximately $750 million to be used to pay down a portion of its secured credit facilities, invest in organic growth and efficiency projects and strategic acquisitions.
Based in Cary, N.C., Cornerstone Building Brands is one of the largest manufacturers of exterior building products for residential and low-rise non-residential buildings in North America.