Owens Corning ( OC Quick Quote OC - Free Report) acquired an Ocala, FL-based premium composite decking and structural lumber manufacturer, WearDeck. The terms of the transaction were not disclosed. WearDeck offers long-lasting, strong, and durable products for weather-resistant decking and structural lumber, for commercial and residential applications. WearDeck’s products are manufactured using proprietary technology and processes from high-density polyethylene (HDPE) leveraging Owens Corning’s glass fiber technology, delivering a stronger high-performance product than most other decking options. In sync with this, Marcio Sandri, president of Owens Corning’s Composites business, said, "WearDeck solutions will advance our growth strategy and help pivot our Composites business to focus on high-value material solutions within the building and construction space." OC expects WearDeck to contribute about $60 million in 2022 sales, which will further add to its target of achieving $10 billion revenues by 2024. Owens Corning estimates that the North American decking market to grow by more than $7 billion and contribute about 5% sales per year. Moreover, Composite decking products, which capture more than 30% of the market, is expected to expand strongly in the future. Focus on Inorganic Moves
Acquisitions are an important part of Owens Corning’s growth strategy. The company is assessing its investment in bolt-on acquisitions that leverage its commercial, operational and geographic strength and expand its functional areas of offering.
On Jul 13, 2021, it announced the acquisition of vliepa GmbH. The acquisition broadened Owens Corning’s global non-wovens portfolio. vliepa specializes in coating, printing and finishing non-wovens, paper and film for the building materials industry. Across the enterprise, Owens Corning continues to invest in selected growth and productivity initiatives to serve customers as well as improve overall operating performance. Specifically, the Composites segment has been generating higher volumes backed by its efforts toward higher-value applications for glass non-wovens and specific markets like India. For the composite business, the company has a two-fold focus. First, it is focused on key markets and geographies wherein it has a market-leading position like North America, Europe and India. Second, the company is focused on making the composite business the most cost-effective network, mainly on the back of productivity and manufacturing performance. It focuses on improving low-cost manufacturing through strategic supply agreements, accomplished large-scale furnace investments and additional productivity. Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have strongly outperformed the
industry so far this year. The company is benefiting from market-leading businesses, innovative products and process technologies, and capabilities. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Some Better Ranked Stocks From Broader Construction Sector Louisiana-Pacific Corporation ( LPX Quick Quote LPX - Free Report) or LP is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products and exterior siding. This Zacks Rank #1 stock has been benefiting from solid demand from the U.S. residential market and repair and remodeling (R&R) business. Strategic business transformation, effective cash management and inorganic moves are likely to boost its future performance. The Zacks Consensus Estimate for LPX’s 2022 earnings has moved up to $14.87 per share from $13.02 in the past 30 days. Weyerhaeuser Company ( WY Quick Quote WY - Free Report) is a leading U.S. forest product companies. This Zacks Rank #1 stock has been benefiting from solid new residential construction activity, which in turn is leading to improved demand. Also, its focus on operational excellence has been advantageous over time. The Zacks Consensus Estimate for WY’s 2022 earnings has moved up to $3.20 per share from $2.83 in the past 30 days. Boise, ID-based Boise Cascade Company ( BCC Quick Quote BCC - Free Report) — which currently carries a Zacks Rank #2 — is aided by favorable commodity wood products, pricing, and robust construction activity. BCC’s earnings estimate for 2022 has moved north to $18.43 per share from $15.07 in the past 30 days.