Cornerstone Building Brands Acquires Kleary Masonry, Inc., Expands Turnkey Stone Solutions
CARY, N.C., March 2, 2020 /PRNewswire/ -- Cornerstone Building Brands, Inc. (NYSE: CNR) (the "Company"), a leading North American manufacturer of exterior building solutions, announced today that it has acquired Kleary Masonry, Inc. ("Kleary"). Kleary is a leading installer of manufactured stone veneer in Northern California, further enhancing the Company's leading turnkey stone veneer offering. Founded in 1959 and headquartered in Sacramento, Kleary employs approximately 230 people, providing high quality workmanship in the Sacramento and Bay area for over three generations.
"The acquisition of Kleary expands our value-added, turnkey stone veneer solutions we offer to our customers," said James S. Metcalf, Chairman and Chief Executive Officer. "Kleary is an excellent strategic fit for our Company, enabling us to strengthen our position in the fastest-growing segment of the residential cladding market. We are also excited about the opportunities the addition of Kleary brings across our builder and contractor networks, in particular the potential to cross-sell our stone cladding and installed services into our commercial buildings business."
The acquisition was funded with cash on hand and through borrowings under the Company's existing credit facilities. Jeffrey S. Lee, Executive Vice President and Chief Financial Officer, said, "We remain focused on driving value through disciplined capital allocation. We expect this acquisition will enhance our overall pro forma Adjusted EBITDA margins as a Company and improve our net debt to LTM pro forma Adjusted EBITDA ratio."
For the 12 months ended December 31, 2019, Kleary had sales of more than $40 million. The Company expects Kleary results to be reported through the Siding business segment.
About Cornerstone Building Brands
Cornerstone Building Brands is a leading manufacturer of exterior building products in North America. Headquartered in Cary, North Carolina, the Company serves residential and commercial customers across new construction and the repair & remodel markets. As the #1 manufacturer of windows, vinyl siding, insulated metal panels, metal roofing and wall systems and metal accessories, Cornerstone Building Brands combines a comprehensive portfolio of products with an expansive national footprint that includes more than 20,000 employees at manufacturing, distribution and office locations throughout North America. For more information, visit us at www.cornerstonebuildingbrands.com.
Certain statements in this release (including statements regarding the Company's estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements regarding the expected financial impact of the Kleary acquisition are forward-looking. The Company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the inability to successfully integrate the newly acquired business into the Company's operations or achieve the expected synergies associated with the acquisition; and adverse changes in the markets served by the newly acquired business. Additional factors are discussed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2019, expected to be filed with the SEC on March 3, 2020. Except as required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact Info:
Tina Beskid
Vice President of Finance & IR
Phone: 919-694-2781
SOURCE Cornerstone Building Brands, Inc.
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