Gibraltar Industries announced Monday it will acquire OmniMax International from Strategic Value Partners for $1.335 billion in cash, a move that expands its grip on the residential construction market. The deal is being advised by Wachtell Lipton Rosen & Katz for Gibraltar and Paul Weiss Rifkind Wharton & Garrison LLP for OmniMax and SVP.
Strengthening Residential Construction Portfolio
OmniMax, based in Atlanta, is a leading manufacturer of roofing accessories, rain management systems, and exterior building products. Gibraltar said the acquisition will expand its residential construction business, already its top-grossing segment, and that more than 80% of its revenue and profit will come from residential building products after closing.
The companies expect the combination to boost cash flow, lift profit margins in the first full year, and provide the scale needed to compete more effectively in a highly competitive market.
Gibraltar plans to leverage stronger combined earnings, improved working capital, and planned cost savings to reduce debt. The company anticipates lowering its leverage ratio from 3.7 times earnings at closing to 2.0–2.5 times within two years.
