Apogee Enterprises said it will buy Kalwall Companies for up to $115 million on a cash-free, debt-free basis, expanding its architectural portfolio with a business it expects to add $85 million of revenue in the first 12 months after closing.
The deal calls for $105 million in cash at closing and up to $10 million more tied to financial performance through the end of Kalwall’s fiscal 2027 third quarter. Apogee said it expects the transaction to close in its fiscal 2027 second quarter.
Apogee said the acquisition should generate about $4 million in operational and cost synergies by the end of fiscal 2029. It also said Kalwall’s business is expected to carry an adjusted EBITDA margin of about 15% in the first year of ownership, with a long-term target of 20%.
Kalwall, a 71-year-old manufacturer of translucent daylighting systems, brings brands including Kalwall, Structures Unlimited and Kal-Lite. Apogee said it plans to fold the company into its architectural glass segment, where it expects cross-selling opportunities across its architectural offerings.
Apogee said the deal will be financed with cash on hand and its existing credit facility, and that it expects the acquisition to be accretive to adjusted diluted EPS in the first year. The market has reacted to these announcements by moving the company's shares 0.48% to a price of $37.78. For more information, read the company's full 8-K submission here.
