Cornerstone Building Brands Inc. has reportedly announced its plans to sell its business of coil coatings to BlueScope Steel Limited in an all-cash deal for USD 500 million.

This transaction was finalized through a definitive agreement and is expected to be closed this year subject to customary conditions like regulatory approvals. The deal comprises products sold under the brands of Metal Prep and Metal Coaters.

As per the agreement, Cornerstone Building Brands will transfer around 570 employees from the company to BlueScope and sell seven manufacturing plants.

Concerning the transaction, Cornerstone Building Brands and BlueScope will sign long-term supply agreements to maintain a seamless supply of painted hot roll steel and light gauge coil coating at favorable service levels. This will reinstate Cornerstone Building Brands as the preferred metal buildings and roofing solutions provider.

Rose Lee, the Chief Executive Officer, and President of Cornerstone Building Brands cited that the company looks to collaborate with firms that complement its abilities and BlueScope has been a supplier and customer of the company for many years and is well placed to advance the coil coatings business.

Financial outcomes for the coil coatings venture are reported in the Commercial segment of the company. The business garnered net sales of nearly USD 214.9 million.

For this transaction, Rothschild & Co was roped in as the exclusive financial advisor, Alvarez & Marsal Transaction Advisory Group LLC served as Cornerstone Building Brands’ accounting advisor whereas Sullivan & Cromwell LLP was the legal counsel.

It should be noted that Cornerstone Building Brands is North America’s largest producer of exterior building products for low-rise non-residential and residential buildings. The company has its headquarters in Cary, North Carolina, and serves commercial and residential customers across the new repair and remodel, and construction markets.

Moreover, its expansive national footprint and multichannel distribution comprise over 20,000 employees at distribution, manufacturing, and office locations across North America.

Source credit:

https://www.businesswire.com/news/home/20220410005050/en/Cornerstone-Building-Brands-Announces-Divestiture-of-its-Coil-Coatings-Business-for-500-Million-Leverages-Long-Term-Supply-Agreements-for-Growth