Utah's Headwaters to acquire Kleer Lumber
Headwaters Inc., a South Jordan-based building products company, said it has struck a deal to acquire the assets of Kleer Lumber Inc., Massachusetts-based manufacturer of PVC trim board and moulding products.
The Utah company said it intends to introduce Kleer Lumber's products into its national distribution network, expanding its point-of-sale locations.
To finance the deal, Headwaters said it is offering 7.6 million shares of its common stock in a public offering. Headwaters' shares, which are listed on the New York Stock Exchange, closed Monday at $7.78.
Since Kleer Lumber began operating in 2005, it has posted sales increases and profit growth despite the recent declines in the broader repair, remodeling and new-resident construction markets, according to Headwaters.
From 2009 to date, Kleer Lumber's sales increased at a compound annual growth rate of more than 18 percent, with sales of $38 million for the 12 months ended Oct. 31.
Headwaters said it anticipates the acquisition of Kleer Lumber will be completed by Dec. 31.