We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NCI Building (NCS) Completes Merger Agreement With Ply Gem
Read MoreHide Full Article
NCI Building Systems, Inc. has completed the proposed merger of Ply Gem Parent, LLC, thereby bolstering scale, as well as expanding product offerings and customer base across all channels of its construction markets, namely residential, repair & remodel, and commercial.
Under the terms of the transaction, Ply Gem shareholders received approximately 58.7 million shares of NCI common stock. Meanwhile, NCI Building shareholders retained 53% ownership of the combined entity, with Ply Gem shareholders holding the remaining 47%.
Benefits of NCI
Headquartered in Cary, NC, Ply Gem sells and manufactures home exterior products for single and multi-family homes. Its key products include windows, doors, siding, roofing, metal accessories, stone and other adjacent products. On the other hand, Houston, TX-based NCI Building is one of the major integrated manufacturers of metal products for the North American non-residential construction industry.
The combined entity is expected to possess strength in advanced manufacturing, product innovation and cost efficiency, coupled with shared acquisition integration and cross-selling capabilities. The new bigger entity will be headquartered in Cary, NC, with a major presence in Houston, TX. However, the name of the combined company is yet to be finalized.
NCI Building had earlier highlighted that the new company, as a vertically-integrated manufacturer with enhanced growth opportunities, will be able to serve its clients with a broader product portfolio across multiple end markets. It is expected to generate approximately $4.5 billion of revenues on a combined basis in 2018.
Meanwhile, greater diversification of end markets and raw materials is expected to decrease the company’s earnings volatility. Also, ongoing cost-saving initiatives undertaken by both NCI and Ply Gem, along with identified near-term cost synergies are expected to generate more than $150 million savings annually. The combined entity is expected to generate adjusted EBITDA of $660-$680 million on a pro-forma basis in 2018.
Notably, NCI Building, which is slated to report fourth-quarter fiscal 2018 (ending Oct 29) results on Dec 12, will change its reporting period. Following its fiscal fourth-quarter earnings release, the combined company will move to a calendar year-end fiscal reporting schedule. Consolidated results during the transition period from Oct 29 through Dec 31, 2018 (that will include the results of Ply Gem beginning Nov 16, 2018) will be reported in February 2019.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
NCI Building (NCS) Completes Merger Agreement With Ply Gem
NCI Building Systems, Inc. has completed the proposed merger of Ply Gem Parent, LLC, thereby bolstering scale, as well as expanding product offerings and customer base across all channels of its construction markets, namely residential, repair & remodel, and commercial.
Under the terms of the transaction, Ply Gem shareholders received approximately 58.7 million shares of NCI common stock. Meanwhile, NCI Building shareholders retained 53% ownership of the combined entity, with Ply Gem shareholders holding the remaining 47%.
Benefits of NCI
Headquartered in Cary, NC, Ply Gem sells and manufactures home exterior products for single and multi-family homes. Its key products include windows, doors, siding, roofing, metal accessories, stone and other adjacent products. On the other hand, Houston, TX-based NCI Building is one of the major integrated manufacturers of metal products for the North American non-residential construction industry.
The combined entity is expected to possess strength in advanced manufacturing, product innovation and cost efficiency, coupled with shared acquisition integration and cross-selling capabilities. The new bigger entity will be headquartered in Cary, NC, with a major presence in Houston, TX. However, the name of the combined company is yet to be finalized.
NCI Building had earlier highlighted that the new company, as a vertically-integrated manufacturer with enhanced growth opportunities, will be able to serve its clients with a broader product portfolio across multiple end markets. It is expected to generate approximately $4.5 billion of revenues on a combined basis in 2018.
Meanwhile, greater diversification of end markets and raw materials is expected to decrease the company’s earnings volatility. Also, ongoing cost-saving initiatives undertaken by both NCI and Ply Gem, along with identified near-term cost synergies are expected to generate more than $150 million savings annually. The combined entity is expected to generate adjusted EBITDA of $660-$680 million on a pro-forma basis in 2018.
Notably, NCI Building, which is slated to report fourth-quarter fiscal 2018 (ending Oct 29) results on Dec 12, will change its reporting period. Following its fiscal fourth-quarter earnings release, the combined company will move to a calendar year-end fiscal reporting schedule. Consolidated results during the transition period from Oct 29 through Dec 31, 2018 (that will include the results of Ply Gem beginning Nov 16, 2018) will be reported in February 2019.
Share Price Performance
NCI Building, which shares space with Armstrong World Industries, Inc. (AWI - Free Report) , United Rentals, Inc. (URI - Free Report) and TopBuild Corp. (BLD - Free Report) in the Zacks Building Products – Miscellaneous industry, has declined 25.4% in the past year. Restructuring charges, raw-material cost inflation and strong competition are pressing concerns for the company. Currently, NCI Building carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>