Quanex May Sell Building Products Group

Quanex Corp. is considering divestment of its building products group, which logs more than $1 billion in sales annually. The unit includes Homeshield, Mikron Industries and Truseal Technologies.

These window and door industry suppliers are part of the Engineered Products segment of Quanex’s building products group. The other segment of the business is Aluminum Sheet Products, which serves primarily the building and construction market.

The company may consider 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,” says Raymond 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.”

Quanex told the Associated Press there is no guarantee that the strategic review will result in a transaction. The board does not plan to disclose further developments until it has approved a course of action. The company’s board has retained Lazard Freres & Co. LLC as its financial adviser to support its strategic review.

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