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Apogee Enterprises Inc., guided by Cleary Gottlieb Steen & Hamilton LLP, announced on Wednesday that it will acquire UW Interco LLC, also known as UW Solutions, for $240 million in cash. The deal, set to bolster Apogee’s specialty coatings business, involves purchasing the company from private equity firm Heartwood Partners, advised by Finn Dixon & Herling LLP.

Strategic Move in Specialty Coatings

Apogee, headquartered in Minneapolis, sees the acquisition as a strategic fit to enhance its large-scale optical segment and grow in the specialty coatings and materials market. The addition of UW Solutions—a maker of high-performance coated substrates—will allow Apogee to broaden its offerings, especially in non-residential construction projects like manufacturing and distribution centers.

"This acquisition is perfectly aligned with our strategy of adding differentiated businesses that excel in operational excellence," said Apogee CEO Ty R. Silberhorn. He highlighted the company's focus on expanding into new markets, expecting the combined capabilities to drive long-term growth.

Apogee Buys UW Solutions : Funding and Market Focus

The acquisition will be funded through cash on hand and Apogee’s existing credit facilities. UW Solutions, based in Louisville, Kentucky, caters to diverse markets, offering products such as building solutions for distribution centers, as well as premium graphic arts materials under brands like ResinDEK, ChromaLuxe, and RDC Coatings.

Heartwood Partners’ Perspective

Heartwood Partners, based in Connecticut, acquired UW Solutions through its Heartwood Partners III LP fund. Devlin Riley, CEO of UW Solutions, praised the firm's support in facilitating growth and expressed optimism about the future with Apogee. Heartwood managing partner Demetrios Dounis noted that this marks the third exit for its Fund III, celebrating the company’s evolution into a world-class coatings provider.

Apogee Buys UW Solutions : Legal Teams

Cleary Gottlieb’s M&A team was led by Aaron Meyers, with support from partners specializing in various legal areas such as antitrust, environmental, intellectual property, and finance. The legal team for Finn Dixon & Herling, representing UW Solutions and Heartwood, was not fully disclosed at the time of the announcement.

The deal is expected to close by the third quarter of Apogee’s fiscal year 2025, pending standard closing conditions.