Freedonia Analyst Weighs In On NCI Building Systems' Acquisition of Ply Gem

News provided by

Jul 19, 2018, 10:41 ET

CLEVELAND, July 19, 2018 /PRNewswire/ -- NCI Building Systems Incorporated, a leading US manufacturer of metal building systems and components, announced that it has entered into an agreement to purchase Ply Gem Parent LLC – a leading manufacturer of plastic building products – from Clayton, Dubilier & Rice for $1.2 billion.

The transaction, which is expected to be completed in the fourth quarter of 2018, will create a company that will:

Have a combined total expected annual sales of about $4.2 billion
Hold leading market positions in a number of exterior building products segments
Have a national footprint of manufacturing and distribution facilities

According to Freedonia Group industry analyst Matt Zielenski, "The union of NCI Building Systems and Ply Gem will create a well-balanced building materials manufacturing firm."

NCI is a leading producer of prefabricated metal buildings and metal roof and wall components used mainly in commercial construction applications – particularly in the new build market. Ply Gem, on the other hand, primarily is active in the residential market, especially in the replacement segment, where the company derives significant aftermarket sales from homeowners replacing older siding, windows, and exterior trim.

"The combined company will be better able to withstand swings in the construction cycle," says Zielenski.

In addition, the new company is poised to be a leading supplier of exterior building products, particularly those that offer enhanced energy savings.

Noted Zielenski: "Construction professionals are continually looking for environmentally friendly building products that reduce energy consumption while remaining visually appealing. Both companies have extensive product portfolios in this growing market segment – Ply Gem with its offerings of insulated vinyl siding and ENERGY STAR-compliant windows and doors, and NCI Building Systems with its insulated metal panel product offerings."

For more information about the US exterior building products industry, see the Construction Studies page featuring the following industry studies by The Freedonia Group:

Moulding & Trim in the US by Material, Product, Market, & Region, 7th Edition
Siding in the US by Material, Market, & Region, 17th Edition
Roofing: US Forecasts by Product, Market, & Subregion
Windows & Doors Market Forecast in the US by Product, Material, Market, & Region
Metal Roofing in the US by Product, Market, & Subregion
Doors Market in the US by Material, Product, Market, & Region
Windows Market in the US by Material, Product, Market, & Region

About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.

Media Contact
Corinne Gangloff
[email protected]
440-684-1261x112

SOURCE The Freedonia Group