Apogee Enterprises to Acquire Kalwall Companies for Up to $115M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Apogee Enterprises announced that it has entered into a definitive agreement to acquire Kalwall Companies from the Keller family for up to $115M on a cash-free, debt-free basis, subject to customary closing conditions. The purchase price consists of $105M cash at close and up to $10M of cash earnout subject to financial performance through the end of the Company's fiscal 2027 third quarter. The transaction is subject to certain customary closing conditions and is expected to close during the Company's fiscal 2027 second quarter.
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Analyst Views on APOG
Wall Street analysts forecast APOG stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 37.740
Low
44.00
Averages
45.00
High
46.00
Current: 37.740
Low
44.00
Averages
45.00
High
46.00
About APOG
Apogee Enterprises, Inc. is a provider of architectural building products and services, as well as high-performance coated materials used in a variety of applications. The Company operates through four segments, which include Architectural Metals, Architectural Services, Architectural Glass, and Performance Surfaces. The Architectural Metals segment designs, engineers, fabricates and finishes aluminum window, curtainwall, storefront and entrance systems used primarily in non-residential construction. The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install architectural curtainwall and other facade-related systems primarily in non-residential construction. The Architectural Glass segment cuts, treats, coats and fabricates high-performance glass used in custom window and wall systems primarily for non-residential buildings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Apogee to Acquire Kalwall for Up to $115 Million
- Acquisition Overview: Apogee Enterprises announced it will acquire Kalwall Companies for up to $115 million in cash, with $105 million payable at closing and an additional $10 million contingent on financial performance through the end of Apogee's fiscal 2027 third quarter.
- Revenue Expectations: The acquisition is expected to add approximately $85 million in revenue in the first year, with an adjusted EBITDA margin of about 15%, significantly enhancing the company's profitability and competitive position in the market.
- Synergy Projections: Apogee anticipates achieving around $4 million in operational and cost synergies by the end of fiscal 2029, which will further improve operational efficiency and financial performance.
- Integration Strategy: Kalwall will be integrated into Apogee's Architectural Glass segment, a strategic move that not only expands the product line but also strengthens Apogee's position in the high-performance translucent daylighting solutions market.
See More
Apogee Enterprises to Acquire Kalwall for Up to $115 Million
- Acquisition Overview: Apogee Enterprises has announced its agreement to acquire Kalwall Companies for up to $115 million, comprising $105 million in cash at closing and up to $10 million contingent on financial performance, indicating a strong commitment to the high-performance building products market.
- Funding Sources: The transaction will be financed through Apogee's existing credit facility and cash, reflecting the company's financial stability and confidence in future growth prospects.
- Integration Plan and Expected Benefits: Apogee intends to integrate Kalwall into its Architectural Glass segment, anticipating an accretive impact on adjusted diluted EPS in the first year and operational cost synergies of $4 million by the end of fiscal 2029.
- Long-term Financial Outlook: The acquisition is expected to generate $85 million in revenue with an adjusted EBITDA margin of approximately 15% in the first year, setting a long-term margin target of 20%, showcasing the company's positive outlook on future profitability.
See More
Apogee Acquires Kalwall to Drive Growth Strategy
- Acquisition Overview: Apogee has announced a definitive agreement to acquire Kalwall for up to $115 million, including $105 million in cash at closing and up to $10 million in earnouts, expected to close in the second quarter of fiscal 2027, enhancing its competitive position in the architectural market.
- Integration and Synergies: The acquisition will integrate Kalwall into Apogee's Architectural Glass segment, with expected operational cost synergies of $4 million by the end of fiscal 2029, thereby improving overall operational efficiency and market responsiveness.
- Revenue and Profitability Expectations: The acquisition is projected to contribute $85 million in revenue in the first year, with an adjusted EBITDA margin of approximately 15%, targeting a long-term margin of 20%, significantly enhancing Apogee's profitability and market standing.
- Strategic Importance and Future Outlook: Apogee's CEO stated that Kalwall's brand reputation and technological advantages will further solidify its leadership in high-performance building envelope solutions, driving long-term growth and enhancing shareholder value.
See More
Apogee (APOG) Q4 2026 Earnings Transcript
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Apogee Enterprises Q4 2026 Earnings Exceed Expectations
- Performance Exceeds Expectations: Apogee Enterprises reported Q4 fiscal 2026 net sales of $351.4 million, a 1.6% increase year-over-year, surpassing market expectations and demonstrating resilience in a challenging environment.
- Successful Acquisition Integration: The company effectively integrated UW Solutions into its Performance Services segment, achieving first-year financial targets of $100 million in revenue and an adjusted EBITDA margin of at least 20%, enhancing its competitive position.
- Cautious Future Outlook: Management anticipates fiscal 2027 net sales between $1.38 billion and $1.43 billion, with adjusted EPS ranging from $2.70 to $3.25, reflecting a cautious approach to the current operating environment.
- Cost Management Strategy: The company actively managed its cost structure to mitigate the impacts of rising aluminum prices and tariffs, with expectations that the tariff effects will shift from a headwind in fiscal 2026 to a tailwind in fiscal 2027, indicating confidence in future profitability.
See More
Apogee Q4 Earnings Beat Expectations with Positive Outlook
- Strong Earnings Report: Apogee's Q4 non-GAAP EPS of $0.92 exceeded expectations by $0.06, indicating robust profitability and operational efficiency.
- Revenue Growth: The company reported revenues of $351.35 million, reflecting a 1.6% year-over-year increase and surpassing market expectations by $15.89 million, driven by favorable pricing and product mix despite lower sales volume.
- Positive Outlook: Apogee anticipates net sales between $1.38 billion and $1.43 billion, slightly below the consensus of $1.39 billion, with adjusted diluted EPS projected between $2.70 and $3.25, lower than the consensus of $3.43.
- Cost Control Measures: The company expects interest expenses of approximately $10 million, an adjusted effective tax rate of 26% to 27%, and capital expenditures between $35 million and $40 million, reflecting proactive cost management strategies.
See More
Apogee to Acquire Kalwall for Up to $115 Million
- Acquisition Overview: Apogee Enterprises announced it will acquire Kalwall Companies for up to $115 million in cash, with $105 million payable at closing and an additional $10 million contingent on financial performance through the end of Apogee's fiscal 2027 third quarter.
- Revenue Expectations: The acquisition is expected to add approximately $85 million in revenue in the first year, with an adjusted EBITDA margin of about 15%, significantly enhancing the company's profitability and competitive position in the market.
- Synergy Projections: Apogee anticipates achieving around $4 million in operational and cost synergies by the end of fiscal 2029, which will further improve operational efficiency and financial performance.
- Integration Strategy: Kalwall will be integrated into Apogee's Architectural Glass segment, a strategic move that not only expands the product line but also strengthens Apogee's position in the high-performance translucent daylighting solutions market.
See More
Apogee Enterprises to Acquire Kalwall for Up to $115 Million
- Acquisition Overview: Apogee Enterprises has announced its agreement to acquire Kalwall Companies for up to $115 million, comprising $105 million in cash at closing and up to $10 million contingent on financial performance, indicating a strong commitment to the high-performance building products market.
- Funding Sources: The transaction will be financed through Apogee's existing credit facility and cash, reflecting the company's financial stability and confidence in future growth prospects.
- Integration Plan and Expected Benefits: Apogee intends to integrate Kalwall into its Architectural Glass segment, anticipating an accretive impact on adjusted diluted EPS in the first year and operational cost synergies of $4 million by the end of fiscal 2029.
- Long-term Financial Outlook: The acquisition is expected to generate $85 million in revenue with an adjusted EBITDA margin of approximately 15% in the first year, setting a long-term margin target of 20%, showcasing the company's positive outlook on future profitability.
See More
Apogee Acquires Kalwall to Drive Growth Strategy
- Acquisition Overview: Apogee has announced a definitive agreement to acquire Kalwall for up to $115 million, including $105 million in cash at closing and up to $10 million in earnouts, expected to close in the second quarter of fiscal 2027, enhancing its competitive position in the architectural market.
- Integration and Synergies: The acquisition will integrate Kalwall into Apogee's Architectural Glass segment, with expected operational cost synergies of $4 million by the end of fiscal 2029, thereby improving overall operational efficiency and market responsiveness.
- Revenue and Profitability Expectations: The acquisition is projected to contribute $85 million in revenue in the first year, with an adjusted EBITDA margin of approximately 15%, targeting a long-term margin of 20%, significantly enhancing Apogee's profitability and market standing.
- Strategic Importance and Future Outlook: Apogee's CEO stated that Kalwall's brand reputation and technological advantages will further solidify its leadership in high-performance building envelope solutions, driving long-term growth and enhancing shareholder value.
See More
Apogee (APOG) Q4 2026 Earnings Transcript
See More
Apogee Enterprises Q4 2026 Earnings Exceed Expectations
- Performance Exceeds Expectations: Apogee Enterprises reported Q4 fiscal 2026 net sales of $351.4 million, a 1.6% increase year-over-year, surpassing market expectations and demonstrating resilience in a challenging environment.
- Successful Acquisition Integration: The company effectively integrated UW Solutions into its Performance Services segment, achieving first-year financial targets of $100 million in revenue and an adjusted EBITDA margin of at least 20%, enhancing its competitive position.
- Cautious Future Outlook: Management anticipates fiscal 2027 net sales between $1.38 billion and $1.43 billion, with adjusted EPS ranging from $2.70 to $3.25, reflecting a cautious approach to the current operating environment.
- Cost Management Strategy: The company actively managed its cost structure to mitigate the impacts of rising aluminum prices and tariffs, with expectations that the tariff effects will shift from a headwind in fiscal 2026 to a tailwind in fiscal 2027, indicating confidence in future profitability.
See More
Apogee Q4 Earnings Beat Expectations with Positive Outlook
- Strong Earnings Report: Apogee's Q4 non-GAAP EPS of $0.92 exceeded expectations by $0.06, indicating robust profitability and operational efficiency.
- Revenue Growth: The company reported revenues of $351.35 million, reflecting a 1.6% year-over-year increase and surpassing market expectations by $15.89 million, driven by favorable pricing and product mix despite lower sales volume.
- Positive Outlook: Apogee anticipates net sales between $1.38 billion and $1.43 billion, slightly below the consensus of $1.39 billion, with adjusted diluted EPS projected between $2.70 and $3.25, lower than the consensus of $3.43.
- Cost Control Measures: The company expects interest expenses of approximately $10 million, an adjusted effective tax rate of 26% to 27%, and capital expenditures between $35 million and $40 million, reflecting proactive cost management strategies.
See More
