EFCO being sold to Apogee Enterprises
No changes expected to operations at Monett firm
EFCO Corporation, one of Monett’s largest employers and a division of Pella Corporation, is being sold to another large company focusing on the commercial market.
Pella Corporation, which acquired EFCO in 2007, has signed an agreement to sell EFCO to Apogee Enterprises, a North American market leader in commercial construction products for more than 65 years. According to an official news release, the sale is expected to cost approximately $195 million.
Based in Minneapolis, Minn., Apogee has seven other businesses providing glass, aluminum framing systems and installation services for commercial construction projects. Apogee is traded on the NASDAQ exchange under APOG, and had annual revenues of $1.1 billion in its last fiscal year.
The sale will make EFCO part of a public firm for the first time. EFCO was privately held up until its initial sale, and Pella Corporation remains a private company. Apogee has agreed to buy 100 percent of EFCO from Pella.
Apogee has indicated that it does not expect any changes to EFCO’s operations or staffing once the purchase is completed. Cameron McGinley, EFCO president, said that the EFCO leadership team will remain with Apogee to lead EFCO.
“A leader in commercial construction products, Apogee is an ideal parent company for EFCO,” McGinley said. “We are pleased to be joining the Apogee family and look forward to working with Apogee to capitalize on product, market and operational opportunities for EFCO.”
“EFCO operates in a space we know and structurally has similar operations to those within Apogee,” said Joseph F. Puishys, Apogee chief executive officer. “In addition, with its broad range of high-performance window, curtainwall and storefront products, it rounds out the Apogee product offering.”
In an expanded statement released by Apogee, Puishys elaborated on his company’s plans.
“Our acquisition of EFCO will accelerate our growth strategies, and expand our presence in mid-size commercial buildings, broaden our product offerings and increase our geographic presence across the United States,” Puishys said. “We also see significant margin enhancement opportunities as we leverage Apogee’s scale, operational excellence expertise and supply chain synergies that build on initiatives already being implemented by EFCO’s strong management team.
“EFCO is a growing and profitable company, with annual revenues of more than $250 million that are largely generated from less cyclical mid-size and small commercial projects, a target Apogee growth sector. We expect this acquisition to generate cash and be accretive to Apogee’s EBITDA [earnings before interest, tax, depreciation and amortization] and earnings per share, excluding transaction costs, this fiscal year. We expect to generate $10 million to $15 million in annual synergies and operational efficiencies by fiscal 2020.”
Apogee expects to complete the purchase of EFCO in the first half of its fiscal 2018, which ends in August 2017, pending regulatory approval.
EFCO Corporation, founded in 1953, moved to Monett in 1958. The name is an acronym for the company’s founders: George Eberle, the college classmate of fellow founder Terry Fuldner, and Tom Clark. Eberle left the company in 1962 to return to St. Louis. Clark also left the firm in the 1960s and founded Clark Industries in Monett. Fuldner and his sons Chris and John continued to run EFCO, Chris serving as CEO at the time of the sale to Pella.
According to the Monett Chamber of Commerce’s most recent directory, EFCO has more than 1,500 employees in Monett.