Apogee to Expand Product Offerings With UW Solutions Buyout

Core Viewpoint - Apogee Enterprises, Inc. has announced the acquisition of UW Interco, LLC for $240 million, aligning with its strategy to enhance its portfolio with high-performing businesses [1] Group 1: Acquisition Details - The acquisition price of $240 million represents approximately 8.5 times UW Solutions' expected adjusted EBITDA for fiscal 2026 [2] - Apogee plans to finance the acquisition using cash on hand and its existing credit facility [2] - Post-acquisition, UW Solutions will be integrated into Apogee's Large-Scale Optical segment, creating a scalable growth platform in specialized coatings and materials [2] Group 2: Expected Benefits - The deal is anticipated to generate $5 million in operational cost synergies by fiscal 2027 [3] - It is projected to enhance Apogee's long-term financial profile, including revenue growth rate and adjusted EBITDA margin, starting in fiscal 2026 [3] - The acquisition is expected to contribute approximately $100 million in sales for fiscal 2026, with an adjusted EBITDA margin of around 20% [3] - Apogee is expanding its product portfolio for non-residential construction and diversifying its large-scale optical segment through this acquisition [3] Group 3: Financial Performance - Apogee reported earnings per share of $1.44 for the first quarter of fiscal 2025, exceeding the Zacks Consensus Estimate of $1.16, marking a 37.1% year-over-year increase [4] - The company generated revenues of $331.5 million in the fiscal first quarter, reflecting an 8.3% year-over-year decline due to lower volume [4] Group 4: Stock Performance - Apogee's shares have increased by 47% over the past year, contrasting with a 4.8% decline in the industry [5]