Gibraltar Industries, Inc. (NASDAQ: ROCK) today announced that it has acquired Dramex Corporation, a privately-held manufacturer of expanded metal products based in Montreal, Quebec, with manufacturing facilities in Canada, the United States, the United Kingdom, and a joint venture in Mexico. Terms of the acquisition were not announced.
Dramex manufactures standard and flattened expanded metal, structural grating, micro-mesh, and decorative metal patterns sold under the trademark DRAMEX ®. Formed in 1958, Dramex employs 90 people at five manufacturing locations in Iberville, Quebec; Rexdale, Ontario; Youngstown, Ohio; Shreveport, Louisiana; and Redditch, England. It has annual sales of approximately $25 million (USD).
“The Dramex acquisition further strengthens Gibraltar’s global leadership position in the growing expanded metal market,” said Brian J. Lipke, Gibraltar’s Chairman and Chief Executive Officer. “It broadens and complements the product offering of AMICO and the Expanded Metal Company, gives us manufacturing facilities in new markets, and expands and diversifies our customer base.”
Gibraltar first entered the expanded metal market with its October 2005 acquisition of AMICO, a North American leader in this product category. The November 2006 acquisition of the Expanded Metal Company broadened and diversified its expanded metal product line, and also gave Gibraltar its first facilities in Europe.
“The Dramex acquisition is consistent with our strategy of focusing on niche markets where we have a leadership position. It also continues to grow our business in the commercial, industrial, and architectural building markets. We expect this transaction will be immediately accretive to earnings, before any synergies,” said Henning N. Kornbrekke, President and Chief Operating Officer.
“Dramex further strengthens Gibraltar’s expanded metal product portfolio,” said Joseph D. Smith, AMICO’s President. “In the months ahead, we will be actively working to maximize the many marketing and operating synergies between Dramex, the Expanded Metal Company, and AMICO.”
Following completion of the acquisition, Dramex’s current management team will continue to run its day-to-day operations.
Gibraltar Industries is a leading manufacturer, processor, and distributor of primarily metals for the building, industrial, and vehicular markets. The company serves a large number of customers in a variety of industries in all 50 states and throughout the world. It has approximately 3,600 employees and operates 82 facilities in 26 states, Canada, China, England, Germany, and Poland. Gibraltar’s common stock is a component of the S&P SmallCap 600 and the Russell 2000 Index.
Information contained in this release, other than historical information, should be considered forward-looking, and may be subject to a number of risk factors, including: general economic conditions; the impact of the availability and the effects of changing raw material prices on the Company’s results of operations; energy prices and usage; the ability to pass through cost increases to customers; changing demand for the Company’s products and services; risks associated with the integration of acquisitions; and changes in interest or tax rates.
Gibraltar’s news releases, along with comprehensive information about Gibraltar, are available on the Internet, at http://www.gibraltar1.com.