AGC to Sell North American Architectural Glass Business to Cardinal Glass Industries
Officials from AGC Inc. announced the company will sell its North American architectural glass business to Cardinal Glass Industries, according to a June 15 AGC release. The companies reached an agreement on the sale today.
The $450 million transfer deal is subject to the approval of the related authorities, and the earliest closing would be July 2021, according to AGC.
The glass facilities subject to sale include AGC’s Greenland, Tennessee, float glass manufacturing plant with two furnaces and one coater; its coating facility in Abingdon, Virginia; and a float plant in Spring Hill, Kansas, with one furnace, according to the release.
The North American architectural glass business became a target for sale in the AGC plus-2023 management policy, announced in February. According to AGC officials, “AGC has strived for improvements of the profitability and asset efficiency of its architectural glass business, which was designated as one of the AGC Group’s priority issues.”
They continued, “AGC has concluded that it will create further growth opportunities by transferring it to Cardinal Glass Industry, which has business trading experience with AGC in the past and is expected to make the most effective use of AGC’s assets and personnel.”
Cardinal Glass Industries operates 42 locations in the United States, including five float glass manufacturing facilities. The addition of AGC’s float production capabilities will make it one of the largest float glass producers in North America. Previously, Cardinal has operated primarily in the residential market, providing glass for windows and doors.
According to Cardinal officials in a separate release, “This deal positions Cardinal to significantly expand its float, coating, and tempering capacity to stay responsive to the needs of its expanding customer base.”
“Our capital investment plan for these operations will allow us to sustain even higher volumes in a very tight North American glass market,” said Roger O’Shaughnessy, CEO of Cardinal Glass Industries, in the release.
