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Investing.com -- Gibraltar Industries Inc (NASDAQ:ROCK) stock tumbled 12.1% Monday after the company announced it will acquire OmniMax International for $1.335 billion in cash.
The transaction, unanimously approved by Gibraltar’s board of directors, is expected to close in the first half of 2026, subject to regulatory approvals. OmniMax, a leader in residential roofing accessories and rainware solutions, is projected to generate adjusted net sales of $565 million and adjusted EBITDA of $110 million in 2025.
Gibraltar, which manufactures products for the residential, agtech, and infrastructure markets, stated the purchase price represents an 8.4x multiple based on OmniMax’s expected 2025 adjusted EBITDA, including run rate cost synergies of $35 million and cash tax benefits of approximately $100 million.
"The acquisition of OmniMax, and its highly complementary brands, product portfolio, and footprint with localized expertise, accelerates our strategy to expand in residential building products while enhancing customer experience," said Gibraltar Chairman and CEO Bill Bosway.
Following the acquisition, Gibraltar’s Residential business is expected to generate over 80% of the company’s revenue and adjusted EBITDA. The deal is projected to be accretive to Gibraltar’s adjusted EPS in the first fiscal full year after closing.
The company has secured committed financing from Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), and KeyBanc Capital Markets, including up to $1.3 billion in new term loan facilities and an upsized $500 million revolving credit facility.
Post-transaction leverage is expected to be 3.7x 2025 adjusted EBITDA, with Gibraltar targeting a reduction to 2.0-2.5x within 24 months of closing.
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