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Utah's Headwaters to acquire Kleer Lumber

Published December 18, 2012 8:32 am

This is an archived article that was published on sltrib.com in 2012, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

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.