Apogee Enterprises to acquire UW Solutions for $240m to expand specialty coatings offerings

Apogee Enterprises, Inc. announced its plan to acquire UW Interco, LLC, a U.S.-based manufacturer known as UW Solutions, for $240 million in cash. This deal, expected to close by Apogee’s fiscal 2025 third quarter, is subject to customary closing conditions.

UW Solutions is recognised for its expertise in high-performance coated substrates. It serves industries like building products and graphic arts, offering brands such as ResinDEK®, ChromaLuxe®, RDC Coatings™, and Unisub®. This acquisition is set to enhance Apogee’s product offerings in non-residential construction, including manufacturing and warehousing, while strengthening its Large-Scale Optical (LSO) segment.

Strategic acquisition to drive long-term growth

Apogee plans to integrate UW Solutions into its LSO segment, creating a growth platform in the specialty coatings and materials market. The integration is expected to yield $5 million in cost synergies by fiscal 2027, enhancing Apogee’s profitability.

Apogee’s Chief Executive Officer, Ty R. Silberhorn, highlighted the acquisition’s strategic importance, noting that it aligns with the company’s goals of adding differentiated businesses with a record of operational excellence. Silberhorn said Apogee is excited to work with UW Solutions’ employees to drive long-term growth through product diversification and expansion into new market sectors.

Financial expectations and funding

The acquisition price reflects a multiple of 8.5x UW Solutions’ adjusted EBITDA for fiscal 2026, considering synergies and tax benefits. The deal is expected to contribute $100 million in revenue, with an EBITDA margin of approximately 20% in fiscal 2026. Apogee expects the transaction to be accretive to its financial profile, improving its revenue growth and adjusted EBITDA margin, with positive effects on adjusted diluted EPS starting in fiscal 2026.

The transaction will be funded using cash on hand and Apogee’s existing credit facility, with a post-close leverage ratio estimated at 1.5x.

Legal and financial advisors

Cleary Gottlieb Steen & Hamilton LLP acted as legal counsel for Apogee, while Centerview Partners LLC served as the financial advisor.