Gibraltar Industries (ROCK) Acquires Nexus Corp. in $25M All-Cash Deal
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Gibraltar Industries, Inc. (Nasdaq: ROCK) announced that it has acquired privately held Nexus Corporation for $25 million in an all cash transaction that closed today. The transaction enables Gibraltar to strengthen its position in the commercial greenhouse market in the United States.
“The acquisition of Nexus complements our RBI greenhouse company and positions the business as a leader in the U.S. commercial greenhouse market,” said Gibraltar Chief Executive Officer Frank Heard. “Nexus’ leadership in serving the commercial and institutional greenhouse segments dovetails with our current presence in these segments. We expect our combined efforts will enable us to invest further in developing advanced structures and environmental control products for the greenhouse industry. We are excited to welcome the Nexus team to Gibraltar.”
“We are positive about the future of Nexus under the Gibraltar umbrella,” said retiring Nexus shareholders Mike Porter and Cheryl Longtin. “With Gibraltar’s support, we expect Nexus will expand its offerings and services to customers in our key markets.”
With its nearly 25 years serving the greenhouse industry, Colorado-based Nexus has built a strong brand from serving the institutional, and commercial markets with steel and aluminum structures. The U.S. greenhouse structures market is estimated at approximately $250 million and is expected to grow at a 10% rate in 2017, driven by increased demand for organic, locally grown food as well as demands from the floriculture market and public and private research.
Nexus is expected to generate revenues of $30 million in the year ending December 31, 2016. The results of Nexus will be included in the Company’s consolidated financial results from the date of acquisition and, therefore, Gibraltar does not expect the acquisition to have a material impact on its consolidated revenues or earnings in 2016. The all cash purchase price was funded from available cash.
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