Feb 2 2010
Gibraltar Industries, Inc. (NASDAQ: ROCK), a leading manufacturer and distributor of products for the building and industrial markets, today announced that it has completed the sale of the majority of the assets of its Processed Metal Products segment to Worthington Industries, Inc. (NYSE: WOR).
The completion of this transaction finalizes Gibraltar’s exit from steel processing businesses and establishes the Company as a manufacturer and distributor of products for the building and industrial markets. This strategic direction, initiated in 2005, is an ongoing part of Gibraltar’s plan to build a company with optimal operating characteristics and improved shareholder value. This transition included the sale of Gibraltar’s steel strapping business in 2006, the 2007 sale of its Hubbell Steel business, and the 2008 sale of its SCM powdered metal business.
The transition into a building and industrial products company also involved numerous acquisitions, including two postal and storage products companies, Home Impressions and Steel City, and the U.K.-based Expanded Metal Company, a leading European producer of industrial mesh, in 2006. In 2007, Gibraltar acquired Dramex, a manufacturer of industrial grating products; Noll, which manufacturers a diverse product range for the building and HVAC markets; and Florence, a leading manufacturer of engineered storage solutions, including centralized mail and package delivery products.
“Following this transaction with Worthington Industries and prior to any additional acquisition activity, our productive sales capacity will still be in excess of $1 billion. Looking ahead, we expect to redeploy the capital from this sale to strengthen our product leadership positions in targeted growth areas that provide us with stronger performance characteristics,” said Brian J. Lipke, Gibraltar’s Chairman and Chief Executive Officer.
“Even though our Processed Metal Products business helped us to grow and diversify our company, with the change in our strategic direction we concluded that it would be a better match with another organization like Worthington which is already in that space. As a result of this transaction, Worthington becomes the clear market leader in this product category,” said Henning N. Kornbrekke, Gibraltar’s President and Chief Operating Officer.
Source: http://www.gibraltar1.com/