Oldcastle BuildingEnvelope® (OBE), a CRH Group company, has acquired C.R. Laurence Co. Inc. (CRL), a distributor of custom hardware and glazing products to the glass and glazing industry. CRL is an ISO 9001:2008 certified premier manufacturer that has built truck and van windows, sliders, sunroofs and accessories for the automotive industry for more than 40 years.
The purchase was made for a total consideration of $1.3 billion, which includes deferred consideration at a net present cost of $86 million–payable over five years. The business will be acquired debt free, and completion of the purchase is anticipated for early September 2015.
CRH will finance the transaction using existing financial resources, according to the company.
Los Angeles-based CRL will continue to be independently managed and operated as a subsidiary of OBE and will retain all existing management structures and personnel, according to OBE.
“CRL is a true American success story. [CRL] CEO Don Friese has built an extraordinary organization that has enjoyed exceptional growth,” says Ted Hathaway, CEO of OBE. “I have been impressed with CRL’s leadership and unwavering commitment to the customer. We extend a warm welcome to their talented employees and management team and look forward to capturing unique and compelling synergies together.”
CRL has produced custom windows for major OEMs such as General Motors, Ford, Ram, Nissan, Toyota, Navistar, Peterbilt, Freightliner, Bombardier and John Deere, among others.
CRL has eight manufacturing/engineering centers and 28 service centers across the U.S. and Canada, and an additional six operations in the United Kingdom, Denmark, Germany and Australia. The company designs and manufactures a wide range of engineered hardware products required by professional glaziers and glass shops to complete the installation of architectural glass in both commercial and residential markets.
“CRL is proud to be acquired by Oldcastle BuildingEnvelope®, who we have admired for many years,” says Friese. “As a leader in the glazing industry, it is an honor to be part of this world-class company. We look forward to the opportunity to build upon our strengths and talents to better serve our customers.”
With more than 1,600 employees at 42 locations, CRL serves all of the U.S. and Canada and is gaining a footprint overseas in Western Europe and Australia. The company generated PBT of $51 million and had gross assets of $290 million at the end of 2014. Its products include architectural and shower door hardware, glass installation tools and supplies, and aluminum storefront and door systems.
With 48 locations in North America and 4,500 employees, OBE, which is part of CRH’s Americas Products division, has the largest footprint in the industry, according to the company.
Forecasted CRL sales for 2015 are $570 million, on which EBITDA of $115 million is expected. This excludes annual synergies of $40 million, which are expected to be generated by 2017 from the combination with BuildingEnvelope.
“CRL is a business with strong growth characteristics and an excellent operational fit with our Building Envelope business in the United States and represents an exciting opportunity for CRH,” says Albert Manifold, CRH chief executive. “In addition to increasing our exposure to the growing non-residential and residential construction markets in the United States, CRL’s strong brand, focus on innovation and growing presence in Europe and Australia, combined with CRH’s international reach, provide the potential for this high-growth business to become a global leader.”