NCI Building Systems to acquire insulated panel supplier

NCI Building Systems has entered into a definitive agreement to purchase Metl-Span, a maker of insulated panels, from a subsidiary of BlueScope Steel North America Corp. The deal is valued at $145 million in cash.

Metl-Span, a leading manufacturer of insulated metal wall and roof panels for more than 40 years, operates five manufacturing facilities in the United States serving the nonresidential building products market. For the year ended Dec. 31, 2011, Metl-Span had estimated revenues of $170 million.  The acquisition is subject to a number of closing conditions, including the expiration or termination of any applicable waiting period under the Hart Scott Rodino Act.

Norman Chambers, NCI’s chairman, president and CEO, said in a prepared statement: “The highly synergistic addition of Metl-Span’s products and capabilities will meaningfully enhance NCI’s diversification and expand NCI’s manufacturing footprint in the high-growth insulated metal panel sector, while also growing our customer base and distribution channels. The transaction … will strengthen our position as a leading fully integrated supplier to the nonresidential building products industry in North America, providing our customers a comprehensive suite of building products.”

In connection with the transaction, NCI will refinance its existing asset-based lending (ABL) facility and term loan, which were both set to mature in 2014.  NCI has secured a new fully committed ABL and term loan that will be used, together with cash on hand, to fund the acquisition.