New Technical Director Joins AAMA Staff

The American Architectural Manufacturers Association (AAMA) announces the hiring of Steven Saffell as technical director effective Aug. 13. Saffell’s background is a tapestry of architectural firm work, modular home design, as well as manufactured housing, and residential and commercial fenestration experience. Saffell also spent three years teaching as an adjunct professor.

“I’m thrilled to accept this new role with an association that has been such an integral part of my work,” said Saffell. “I look forward to joining the staff I’ve already enjoyed working with.”

Saffell previously worked with Simonton Windows and Ply Gem.

“With 32 years of work experience, Steven’s broad history will be invaluable in his role overseeing our entire technical operation,” said Janice Yglesias, AAMA’s executive vice president. “Additionally, he brings crucial knowledge and technical expertise related to commercial fenestration systems to the association.”

AAMA’s technical operation includes standards, product certification and codes and regulatory affairs, and Saffell will oversee these aspects of the association as technical director. He is experienced in managing technical teams, including employee development, operational strategy and financial management.

As an active AAMA member participant since 2013 holding several leadership and Board committee positions, Saffell is familiar with the association and also has extensive experience with AAMA product certification programs, as well as code requirements and development.

For more information, visit aamanet.org.

NCI Building Systems and Ply Gem Announce Merger

NCI Building Systems Inc., a manufacturer of exterior building products for commercial construction, and Ply Gem Parent, LLC, a manufacturer of exterior building products for residential construction, announced today that they have signed a definitive agreement under which the two companies will combine in a stock-for-stock merger. The combined company will operate under a name to be determined, and each entity will preserve its existing established brands. The company will be headquartered in Cary, North Carolina, with a significant presence in Houston, Texas. The combined company will have a pro forma enterprise value of $5.5 billion and an implied equity value of $2.6 billion, based on NCI’s closing share price on July 17, 2018.

NCI Chairman James S. Metcalf, who will lead the integration of the two companies and serve as Chairman and CEO of the company, said: “This transformational combination creates the leading exterior building products company with multiple avenues for further growth. Both companies are experiencing sustained momentum driven by meaningful cost savings, and the greater scale and diversification of the combined company support organic growth, margin expansion and longer-term M&A opportunities. With a greater ability to attract and retain top talent in all fields, our combined company will continue to innovate in the exterior building products space — far beyond what either of us could do alone.”

The transaction will create a North American exterior building products platform providing new construction and repair and remodel solutions for commercial and residential applications. As a larger, vertically-integrated manufacturer with enhanced growth opportunities through adjacent products, the combined company will become a one-stop solution for exterior building envelope needs.

Ply Gem Chairman and CEO Gary E. Robinette, who will continue to serve in this role until close, said: “I am grateful and honored to have had the opportunity to lead Ply Gem over the past 12 years and I am proud of our team’s accomplishments during the past decade of successes and challenges. The joining of these two market-leading exterior building products companies creates a platform for growth, enhanced innovation and cost improvements, while serving all channels of the construction markets. I am excited for the associates and customers of the combined company and the next evolution of this best-in-class provider of exterior building envelope solutions.”

NCI CEO Donald Riley, who will continue to serve in this role until close, noted: “This scalable platform is well-positioned to create shareholder value through improved margins, additional cost savings and expanded market penetration. The opportunity for growth through cross-selling and adjacencies to each other’s customers is a major advantage of this transaction. Furthermore, both of our companies are strong in new construction and Ply Gem also excels at repair and remodel, adding to our combined end market diversification and providing further room for growth.”

Financial Highlights, Management

Under the terms of the agreement, NCI will issue 58.7 million shares to Ply Gem shareholders. Upon the close of the transaction, NCI shareholders will own 53 percent of the company’s common equity, with Ply Gem shareholders owning 47 percent. The transaction is generally expected to be tax-free to the Ply Gem owners for U.S. federal income tax purposes.

On a combined basis for calendar year 2018, the company is expected to generate revenue of approximately $4.5 billion and Pro Forma Adjusted EBITDA of $660 million-$680 million, including run-rate synergies and cost savings. The company expects that, after three years following close, cost reduction initiatives and merger-related synergies will yield over $150 million in annual cost savings. Combination-specific synergies include manufacturing efficiencies and procurement and general & administrative savings. The transaction is expected to be immediately accretive to adjusted cash earnings per share and free cash flow.

James S. Metcalf, current Chairman of NCI, will become Chairman and CEO of the combined company. Metcalf served as Chairman and CEO of USG Corporation from 2011 to 2016 and joined the NCI Board in 2017 and became Chairman in 2018.

Donald Riley, current CEO of NCI, will serve as CEO of the company’s NCI Division. Gary Robinette will continue to serve as President, Chairman and CEO of Ply Gem until the transaction is completed, after which he will serve as Chairman Emeritus and Special Advisor to the company. Shawn Poe, current CFO of Ply Gem, will serve as CFO of the company.

Funds managed by Clayton, Dubilier & Rice (CD&R) will own just under 50 percent of the company’s common equity and will designate five directors to the company’s 12-person Board of Directors. Golden Gate Capital, a significant shareholder of Ply Gem, will own approximately 16 percent of the company’s common equity.

“We believe the merger creates attractive and profitable new growth avenues in the North American exterior building products market for the combined company,” said Nathan K. Sleeper, Partner at CD&R, who will serve on the Board of Directors of the company. “There is an enormous value creation opportunity in joining these two industry leaders in terms of delivering operational synergies and enhancing the platform to better serve the company’s customers, broaden its product portfolio, drive innovation and pursue significant opportunities for organic and inorganic growth. We look forward to working with and supporting the management team to realize these goals.”

The transaction has been unanimously approved by a special committee of independent directors formed by NCI’s Board of Directors and by NCI’s full Board (without participation of directors affiliated with CD&R, NCI’s largest shareholder).

The transaction is expected to close in the fourth calendar quarter of 2018, subject to approval by NCI shareholders and customary regulatory approvals.

For more information, visit www.ncibuildingsystems.com and www.plygem.com.

Darius Rucker Is Home For Good Project Ambassador

Three-time GRAMMY Award winner Darius Rucker is partnering with Ply Gem as the 2017 ambassador for the Home for Good project to help hundreds of families build homes across the U.S. with Habitat for Humanity. Ply Gem’s commitment to the belief that everyone deserves a place to call home aligns with Darius’ core values as well as themes across his music.

The Ply Gem Home for Good project is a multi-year initiative that includes a donation of over $1 million of exterior building products and funds for Habitat for Humanity to help families build strength and stability through housing. The company will support the project with advertising and social media initiatives to encourage its associates, the building industry—including distributors, builders and remodelers—as well as consumers to bring awareness of the need for affordable housing in communities across the country. Last year, Ply Gem featured country music icon Alan Jackson as the ambassador for the project.

“From an early age, my mother always encouraged us to give back,” shares Rucker. “Whether it was mowing a neighbor’s yard or supporting a friend, I think it’s important to give back any time and chance you can. For me, the opportunity to partner with Ply Gem and its Home for Good Project to help so many people at a national level is incredible. I am really looking forward to what we can do together.”

“We are proud to have Darius Rucker join us as the 2017 Ply Gem Home for Good project ambassador. He shares our passion for giving back to the community and conviction that every American deserves a safe and decent place they can be proud to call home,” states Gary E. Robinette, chairman and CEO, Ply Gem. “We are committed to the Home for Good project and look forward to partnering with Darius, Habitat for Humanity and families across the U.S. in 2017.”

Through their first year of the Home for Good project, Ply Gem has donated enough building materials –including windows and siding – to help 300 Habitat homeowner families build their homes.

As a way to kick off the Home for Good project, the Ply Gem Deck the Halls with Darius Rucker Sweepstakes has opened. Contestants can learn more about how to enter by visiting www.dariusrucker.com/plygem. There will be five lucky winners, one each week, who will win a $250 Visa gift card.

Engineered Cedar Is Lightweight and Strong

Ply Gem Roofing Engineered Cedar is made using a proprietary polymer formulation—with nearly 100 percent recycled resins—and laser-engraved into molds.

Ply Gem Roofing Engineered Cedar is made using a proprietary polymer formulation—with nearly 100 percent recycled resins—and laser-engraved into molds.

Ply Gem Roofing Engineered Cedar is made using a proprietary polymer formulation—with nearly 100 percent recycled resins—and laser-engraved into molds. It replicates the look of natural cedar roofing while offering a solid-core composition that is strong enough for roofers to walk on while installing. Engineered Cedar can be cut and scored with a utility knife, attached with a nail gun or nailed by hand, and requires no additional framing support or special skills for installation. The product is available in Weathered Gray and Warm Brown color families, which are blended in the factory for authentic variation. It is available in multiple widths to produce visually authentic installs.

Ply Gem Partners with Parksite to Distribute Engineered Slate Roofing

Ply Gem, a manufacturer of exterior building products, announced a partnership with distribution company Parksite Inc. to supply Ply Gem’s new Engineered Slate Roofing. The product will be available by mid-July to building material dealers through three Parksite distribution facilities in the Northeast and Mid-Atlantic markets, covering 16 states from Maine to North Carolina. Locations include:

    · South Windsor, Conn., servicing the New England market.
    · North Brunswick, N.J., servicing Eastern Pennsylvania, New Jersey and New York’s Lower Hudson Valley and Long Island.
    · Baltimore, Md. location, servicing Delaware, Maryland, Central Pennsylvania and Northern Virginia.

Additional locations will be added as the markets demand.

“Parksite’s broad distribution network and proven service reputation, paired with Ply Gem’s high-performance, low maintenance Engineered Slate Roofing are sure to bring the spotlight onto this emerging building materials product category,” said Dave DeRogatis, director of composites, Ply Gem.

Introduced in early 2014, roofing is a new category among Ply Gem’s extensive lineup of more than 20 exterior home product categories. In addition to roofing, Ply Gem offers the complete exterior solution from a single manufacturer – a concept called The Designed Exterior by Ply Gem – including windows, siding, stone veneer, trim and mouldings, fence, railing, accents and accessories.

“This partnership is a win-win for Parksite and Ply Gem,” said Ron Heitzman, president, Parksite. “At Parksite, we only represent quality building products and progressive manufacturers, so we welcome the addition of Ply Gem to our portfolio. As a superior roofing product for builders and contractors, we are positioned to seamlessly deliver the new Ply Gem Engineered Slate Roofing to building material dealers along the east coast.”

In every critical performance category – appearance, durability, ease of installation, water management, cost of ownership and sustainability – Ply Gem Engineered Slate Roofing outperforms other roofing materials such as asphalt, wood, synthetic slate and real slate.

Molded from nearly 100 percent recycled materials, and formulated with real slate, the engineered slate shingles feature deep shadow lines and chiseled edges. Builders and contractors can choose from four color schemes – Sagebrush, Brownstone, Pewter and Charcoal – all pre-blended at the factory to produce the most authentic coloring.

To ease installation, Ply Gem’s engineered slate shingles are lighter weight and manufactured with recessed nail flanges, eliminating the need for additional framing support or any special tools. Additionally, the shingles are designed to resist impact and damage, tested to withstand windloads of up to 110 mph, as well as golf ball-sized hailstones. Also earning one of the industry’s highest fire ratings, the shingles are virtually indestructible.