HOUSTON, TEXAS, Nov. 01, 2022 (GLOBE NEWSWIRE) — Quanex Building Products Corporation (NYSE: NX) (“Quanex” or the “Company”) today announced the acquisition of substantially all the assets of LMI Custom Mixing, LLC (“LMI”).
LMI is a state-of-the-art custom polymer mixer that produces high-quality, customized rubber compounds used in a variety of applications in complementary and attractive diversified industrial end markets, including fenestration, where LMI has been a supplier to Quanex for approximately 20 years. LMI has a highly customer centric model with a reputation for cutting-edge compound development using state-of-the-art machinery.
Key Strategic Benefits of the Combination:
· Fits squarely within Quanex’s material science and process engineering expertise
· Expands product portfolio into a new, attractive category with significant growth opportunities
· Vertical integration and cost savings through supply of compounds to Quanex’s existing IG spacers business in North America, which is located on the same site as LMI’s Cambridge, OH plant
· Familiar, complementary operations represent low execution and integration risk
George Wilson, President and Chief Executive Officer of Quanex, stated, “The acquisition of LMI is consistent with the ‘Growth with Purpose’ strategy we recently unveiled and represents an important first step on our path to generating at least $2 billion in annual revenue. Part of our strategy is to acquire businesses that help us grow in new and existing markets, reinforce our leadership positions, as well as enhance scale to create a more effective platform to drive growth and share gains. The acquisition of LMI delivers on all aspects of this strategy as it adds capabilities well-aligned with our material science and process engineering expertise while expanding our product offering into an attractive category with significant organic and inorganic growth opportunities. In addition, Quanex has a long-tenured relationship with LMI and we firmly believe the addition of LMI’s complementary capabilities will help deliver on our long-term growth strategy. We look forward to a seamless integration that will deliver solid results over time for our employees, customers and shareholders.”
Kevin Gray, President, Chairman and CEO of LMI’s parent company, Lauren International, added, “Quanex is the preferred buyer for this business and a great home for LMI. Quanex is a clear leader in the industries it serves and presents a strong fit with LMI’s custom compounding capabilities. I believe in the value that can be created for our customers by combining these companies and I’m excited for the LMI team to join the Quanex brand.”
Quanex has posted a presentation on its website (http://www.quanex.com) in the Investors section under Events & Presentations that provides a summary of the transaction’s strategic rationale and financial benefits.