Cary’s Cornerstone Building Brands has reached an agreement to buy a Texas manufacturer of metal roofing for $475 million, expanding its business in key growth markets.
Mueller Supply makes residential metal roofing and components and steel buildings in Texas and the Southwest. Headquartered in Ballinger, Texas, where it was founded more than 90 years ago, it has approximately 900 employees.
The company has five manufacturing sites in Amarillo, Ballinger and Huntsville, Texas; Oak Grove, Louisiana; and Phoenix.
“Mueller is a compelling, strategic complement to our retail-direct metal roofing business and will more than double the number of retail branches we have to serve our customers,” said Rose Lee, the CEO of Cornerstone Building Brands, in a statement.
Cornerstone Building expects the transaction to be accretive to earnings through purchasing synergies and revenue growth opportunities.
Additionally, the company expects to finance the transaction with cash on hand and amounts borrowed under its existing credit facilities. The transaction, subject to customary closing conditions, is expected to close early in the third quarter of 2024.
Cornerstone Building Brands has approximately 18,000 employees at 100 manufacturing plants and more than 78 distribution and office locations throughout North America.
NCI Building Systems merged with Ply Gem Parent in November 2018 to create Cornerstone. The company was acquired by private equity firm Clayton, Dubilier & Rice for $5.8 billion, including the assumption of debt, in 2022.
It is the largest manufacturer of exterior building products.
