Gibraltar Industries, Inc. announced the acquisition of OmniMax International for $1.335 billion.
OmniMax is a leader in residential roofing accessories and rainware solutions.
The acquisition is expected to enhance Gibraltar's position in building products and be immediately accretive to EBITDA margin and cash flow.
Enhanced Position in Building Products
The acquisition significantly enhances Gibraltar's position in building products.
Cost Synergies and Cash Benefits
Expectations include $35 million of cost synergies and around $100 million of cash tax benefits, leading to an effective adjusted EBITDA multiple of 8.4x.
Strategic Value Creation
The acquisition is expected to create sizeable scale for a high performing building products business.
Strong Cash Flow Projection
The acquisition is projected to drive stronger cash flow and support deleveraging within 24 months from the close of the acquisition.
- The acquisition is set to optimize Gibraltar's portfolio and expand its presence in the residential building segment, with over 80% of revenue and adjusted EBITDA expected to come from the Residential business post-acquisition.
- Expected immediate EBITDA margin accretion, creating significant cost synergies by 2028, enhancing shareholder value creation and delivering strong cash flow with a clear path to deleveraging.
The acquisition of OmniMax International represents a strategic move for Gibraltar Industries, Inc. to strengthen its market position in residential building products and drive shareholder value creation. With the expected synergies and scale, Gibraltar is poised for growth and enhanced performance in the industry.