This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Headwaters Incorporated Agrees To Acquire Equity Interests In The Entegra Roof Tile And Tag & Stick Businesses

HEADWATERS INCORPORATED (NYSE: HW), a building products company dedicated to improving lives through innovative advancements in construction materials, today announced it has entered into an agreement to acquire an 80% equity interest in the business of Roof Tile, Inc., a leading manufacturer of high quality concrete roof tiles and accessories under the Entegra brand that are sold primarily into the Florida markets (“Entegra Roof Tile”). In addition to the Entegra Roof Tile acquisition, Headwaters has agreed to acquire a 40% equity interest in a separate joint venture to be controlled by the significant shareholders of Entegra Roof Tile to market nationally Tag & Stick, an innovative roofing underlayment. Tag & Stick is currently being sold in the Florida market, and will be made available to Headwaters’ customer base throughout the country. The acquisitions of Entegra Roof Tile and Tag & Stick will provide additional product offerings to our current roofing products portfolio.

Headwaters believes the acquisitions will add additional sales and distribution opportunities in the building products market in Florida, which is the third fastest growing state in the U.S. in terms of population. In addition, Headwaters believes the strategic location of the company’s centralized manufacturing plant in Florida, the quality of its contractor/customer relationships, and the scope of its products/services provide a strong competitive advantage in the market. Many of its customers are currently customers of Headwaters, and provide us with the opportunity to expand our existing sales geographically into the Florida market.

Headwaters’ strategy is to pursue niche building product opportunities where we can enjoy strong market share and top quartile industry margins. Headwaters had 16.5% Adjusted EBITDA margins in 2013, and we anticipate that Entegra Roof Tile and Tag & Stick’s performance will contribute to margin expansion in 2014.

The acquisitions, which are targeted to close in December, 2013, are subject to customary closing conditions. Accordingly, Headwaters cannot be certain that the acquisitions will close on this timeframe or at all.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs