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Buffalo, N.Y.-based Gibraltar Industries, Inc. (ROCK - Analyst Report) recently acquired the assets of a Nev.-based solar-powered ventilation products supplier for $5.0 million, paid through available cash in hand. The acquisition added another product line to Gibraltar Industries’ product portfolio.

The acquired solar-powered ventilation products business generated roughly $4.0 million revenues in 2012. This business will enable Gibraltar Industries to achieve success in the energy conservation segment of the new construction and home remodeling markets.

Exiting the second quarter of 2013, Gibraltar Industries had roughly $44.6 millionof cash and cash equivalents. These funds were to be utilized in business development through acquisitions as well as reinvestments in the business.

Prior to this, Gibraltar Industries acquired three product lines between Nov 14, 2012 and Dec 28, 2012. These included sun protection products for new residential construction and home remodeling; function-critical components for public infrastructure construction and maintenance; and perforated metal products for industrial and automotive applications.

The funding of acquisitions reduced the cash balance of the company by $41.0 million. These acquisitions have contributed immensely to Gibraltar Industries’ revenues since. In the second quarter of 2013 roughly 7.3% of the revenue growth was a result of these acquisitions.

Gibraltar Industries expects to see a decline in the organic revenues in the second half of 2013, owing to a weakness in the industrial markets. However, the acquisitions are expected to offset the decline to some extent.

The company manufactures and distributes products to the industrial and buildings market. The products range from ventilation and expanded metal to mail storage solutions and rain dispersion products and solutions. Gibraltar Industries has a market capitalization of $425.7 million.

Gibraltar Industries currently carries a Zacks Rank #4 (Sell). Other stocks worth a watch in the steel sector are Companhia Siderurgica Nacional (SID - Analyst Report), Gerdau S.A. (GGB - Analyst Report) and Ternium S.A. (TX - Snapshot Report). While Companhia Siderurgica Nacional carries a Zacks Rank #1 (Strong Buy), Gerdau and Ternium carry a Zacks Rank #2 (Buy).

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