Apogee Enterprises Inc. announced that it has entered into a definitive agreement to acquire UW Interco LLC from Heartwood Partners for $240 million in cash, subject to customary closing conditions. The transaction is expected to close during the company’s fiscal 2025 third quarter.
UW Solutions is a U.S.-based, vertically integrated manufacturer of high-performance coated substrates, differentiated by its proprietary formulations and coating application processes. The company serves a broad range of customers in attractive end markets, including building products for distribution centers and manufacturing facilities, as well as premium products for the graphic arts market. The business has a history of innovation with a portfolio of brands, including ResinDEK, ChromaLuxe, RDC Coatings and Unisub.
Given similar core process technologies and coating expertise, Apogee plans to integrate UW Solutions into its large-scale optical segment to create a scalable growth platform in the specialty coatings and materials market. The integration plan is expected to provide $5 million of operational cost synergies by the end of fiscal 2027.
What Apogee says
“UW Solutions is a highly strategic acquisition, aligned with our strategy of adding differentiated businesses with a track record of operating excellence to our portfolio. This acquisition will strengthen large-scale optical segment, our most profitable business segment, and expands our offering of high-performance coated substrate solutions,” says Apogee CEO Ty Silberhorn.
“We are excited to welcome UW Solutions’ employees to Apogee and look forward to working with them to build a powerful new growth engine for our company,” says Silberhorn. “We are expanding our product offerings for non-residential construction by providing an entry into manufacturing, warehousing and distribution center projects, while accelerating our efforts to diversify the large-scale optical segment. We expect meaningful opportunities to utilize the performance coatings capabilities of the combined business to drive long-term growth.”
Acquisition details
The purchase price represents a multiple of approximately 8.5x UW Solutions’ estimated adjusted EBITDA for fiscal 2026, inclusive of run-rate cost synergies of $5 million and net of an approximately $27 million tax step up benefit provided by the transaction. The transaction is expected to be accretive to Apogee’s long-term financial profile, including revenue growth rate and adjusted EBITDA margin and will be accretive to adjusted diluted EPS beginning in fiscal 2026. The acquisition is expected to contribute approximately $100 million of revenue with an adjusted EBITDA margin of approximately 20% in fiscal 2026.
