Genstar backs $228m aluminum take-private

The San Francisco-based firm has added to its investments in the building materials industry with the purchase of International Aluminum Corporation.

San Francisco-based Genstar Capital has agreed to buy publicly traded International Aluminum Corporation, a maker of residential and commercial aluminum materials, for approximately $228 million (€176 million), Genstar announced in a statement.

Shareholders of International Aluminum stock will receive $53 in cash per share. Over the past five years, the company’s stock has seen an overall steady increase in value.

Based in Monterey Park, California and established in 1957, International Aluminum is led by its president Ronald Rudy. It includes a commercial division that makes decorative doors, store fronts and window and curtain walls, as well as a residential division that makes  vinyl and aluminum windows and doors, the statement said. It also has an “extrusion operations” branch that makes “mill finish, anodized and painted extruded aluminum products for internal and external uses.” The company currently trades on the New York Stock Exchange under the ticker symbol IAL.

“International Aluminum represents the type of investment for which we are well recognized,” Darren Gold, a Genstar managing director, said in the statement.

Genstar has made multiple investments in the building products industry before, including one in Akron, Ohio-based Gentek Buildling Products, a producer of aluminum and vinyl siding, windows and doors, as well as another in Shelton, Connecticut-based Panolam International, a maker of residential and commercial decorative laminates, the statement said.

Genstar focuses its investments on the industrial technology, life sciences and business services industries and has approximately $900 million of capital under management. The firm made 3.5 times its original capital commitment when it sold Axia Health Management, a developer of health and wellness programs, to Healthways, a company that works with healthcare providers and health plans to reduce the cost of patient care, for $450 million in October.