Apogee to acquire UW Interco from Heartwood for $240M, sees accretion

Apogee Enterprises announced that it has entered into a definitive agreement to acquire UW Interco from Heartwood Partners for $240M in cash, subject to customary closing conditions. The transaction is expected to close during the company’s third quarter. UW Solutions is a U.S. based, vertically integrated manufacturer of high-performance coated substrates. Apogee plans to integrate UW Solutions into its Large-Scale Optical segment. The integration plan is expected to provide $5M of operational cost synergies by the end of fiscal 2027. The purchase price represents a multiple of approximately 8.5x UW Solutions’ estimated adjusted EBITDA for fiscal 2026, inclusive of run-rate cost synergies of $5M and net of an approximately $27M tax step up benefit provided by the transaction. The transaction is expected to be accretive to Apogee’s long-term financial profile, including revenue growth rate and adjusted EBITDA margin and will be accretive to adjusted diluted EPS beginning in fiscal 2026. The acquisition is expected to contribute approximately $100M of revenue with an adjusted EBITDA margin of approximately 20% in fiscal 2026. Apogee plans to finance the transaction using cash on hand and its existing credit facility. The company expects a post-close consolidated leverage ratio of approximately 1.5x.