CARY – Cornerstone Building Brands, the largest manufacturer of exterior building products in the U.S. with some 20,000 employees, is being sold in a deal worth nearly $6 billion.
The all-cash deal of $5.8 billion, which includes absorption of Cornerstone debt, was announced early Monday.
The buyer is the international private equity firm Clayton, Dubilier & Rice which already owned nearly half Cornerstone’s (NYSE: CNR) stock.
“We believe this transaction provides substantial value for our shareholders while also accelerating Cornerstone Building Brands’ aspiration to become a premier exterior building solutions company,” said Rose Lee, Cornerstone’s CEO. “We have grown our business and portfolio since 2018 when the Company was created, delivering high-quality exterior building products with a strong focus on being a partner of choice for our customers. CD&R will continue to be an outstanding partner as we advance our operational improvements and innovation-driven growth to create many positive outcomes for our customers and employees.”
Once the deal closes, Cornerstone will become a private company.
Shareholders will receive $24.65 per share, a 16% premium over Friday’s closing price.
The companies note that rumors began circulating about a possible deal in February.
