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Quanex to Review Strategic Alternatives for Building Products Group
05/17/2007 - Quanex’s Board of Directors has initiated a review of strategic alternatives for its Building Products group, which consists of Engineered Products and Aluminum Sheet Products.
Quanex Corp.’s Board of Directors has initiated a review of strategic alternatives for its Building Products group.
The Building Products group consists of Engineered Products, which provides window and door OEM customers with engineered products and components, and Aluminum Sheet Products, which serves primarily the building and construction market. Strategic alternatives to be considered include, but are not limited to, a tax-free spin-off to Quanex shareholders, a sale or a joint venture.
"Our two groups, Vehicular Products and Building Products, are both strong businesses with the scale, cash flow, and balance sheet strength needed to succeed and pursue opportunities in their distinct markets,” said Raymond A. Jean, Chairman and CEO of Quanex. “However, given their different products, processes and end markets, we believe that the time is right to explore whether separating these businesses can deliver greater value for our shareholders.”
The Board of Directors has retained Lazard Freres & Co. LLC as its financial advisor to support it in this strategic review.
“At this time, there can be no assurance that this strategic review will result in any type of transaction,” continued Jean. “The Board does not intend to provide an update to this process or disclose developments with respect to potential strategic initiatives until it has approved a definitive course of action.”
Quanex Corp., with fiscal 2006 sales of $2 billion, is an industry-leading manufacturer of value-added, engineered materials and components serving the vehicular products and building products markets.
Quanex's Building Products group generated net sales of approximately $1.1 billion and operating income of approximately $135 million for the year ended October 31, 2006.
