Oldcastle Architectural gets a new deck
Decking brand MoistureShield is under new ownership. Here are the simple facts:
Who bought whom?
Advanced Environmental Recycling Technologies Inc. (AERT) announced that on March 16, 2017, it entered into a definitive agreement to be acquired by Oldcastle Architectural, Inc. The deal brings MoistrueShield and ChoiceDek into the Oldcastle family.
What’s the difference between MoistureShield and ChoiceDek?
ChoiceDek decking is sold in Lowe’s. MoistureShield is sold through national and regional distributors.
What was the price tag of the deal?
Total cash consideration of $117 million.
What other building product brands does Oldcastle own?
Belgard Hardscapes, Sakrete concrete, Bonsal American mixes, among others.
Is it a done deal?
No. The deal is anticipated to close during the second quarter of 2017.
What’s the plan?
According to the announcement: “The acquisition of AERT enables Oldcastle Architectural to enter into the attractive and growing category of composite decking. The ChoiceDek and MoistureShield brands will serve to complement Oldcastle Architectural's existing portfolio of outdoor living brands. Oldcastle Architectural will further enhance AERT's commitment to safety, productivity and innovation.”
Does this deal make sense?
Here’s AERT’s CEO Tom Morrison: "This is a compelling transaction that maximizes shareholder value. We believe this is the right partnership to meet the evolving needs of our customers while furthering our ability to create best-in-class products. We are excited by the opportunities for AERT under Oldcastle Architectural's ownership, and we look forward to being a part of this dynamic new chapter."
