Exchange Income Corporation, an acquisition-oriented corporation, announced on March 16 that it has acquired BVGlazing Systems for $95 million. The acquisition adds BVGlazing’s window wall glazing systems, which are similar to those produced by existing EIC subsidiary Quest Window Systems, to its offerings.
The purchase price will be funded by the issuance of $23 million of EIC common shares to the vendors and cash in the amount of $72 million from the EIC’s credit facility. The transaction is expected to close in the second quarter of 2023, following receipt of regulatory approval under the Competition Act (Canada).
Corporate response
“Our team is excited about taking this next step in our company’s growth,” says Mike Cornacchia, president of BVGlazing. “Quest has a great reputation in the market, and we’ve seen how they’ve grown since EIC’s investment. Their strong presence in the US, with both a large manufacturing facility and internal installation capabilities, are true differentiators. Working together with EIC and our new sister company Quest, we’ll be able to offer our customers even greater value through our combined capacity. This means we’ll be much better positioned to compete for jobs across North America.”
“The long-term demand for high-rise residential buildings is robust, driven by housing affordability and population growth in major metropolitan cities. With these long-term tailwinds, we are keen to grow our investment in our building envelope business, ensuring we remain a leader in this field,” says Mike Pyle, CEO of EIC. “There is minimal overlap between Quest and BVGlazing in their respective key markets, with Quest’s efforts focused primarily in the US since our acquisition of the company in 2017 and BVGlazing’s focus being primarily in Canada. Our ability to now add BVGlazing’s curtain wall and railing systems’ capabilities to Quest’s portfolio is critical.”
About BVGlazing
BVGlazing designs, engineers, manufactures, and supplies window, door, and railing systems for mid-rise and high-rise building projects in Canada and the United States. BVGlazing manufactures unitized and stick curtain wall systems and railing systems, in addition to amenity staircases, architectural railings, and windscreens.
BVGlazing’s ability to provide window wall, curtain wall, and railing products allows them to offer complete solutions to their customers, an increasingly important attribute as developers turn to mixed-use projects that integrate residential, office, and retail spaces to make more efficient use of their properties.
BVGlazing manufactures unitized curtain wall at its 150,000-square-foot facility in Niagara Falls, Ontario, Canada, and window wall, railing, and stick curtain wall in multiple facilities totalling 325,000 square feet in Concord, Ontario, Canada.
