Apogee buys daylighting maker for $115 million
The architectural-products supplier disclosed the Kalwall Companies deal in its fiscal first-quarter report.
Apogee Enterprises (APOG) completed the acquisition of Kalwall Companies for up to $115 million, marking its largest purchase in three years. The deal, disclosed in the company’s fiscal first-quarter report, expands Apogee’s architectural building-products segment with differentiated daylighting capabilities.
The Minneapolis-based supplier of glass and metal products for commercial buildings has focused on organic growth and smaller bolt-ons since its 2021 divestiture of the large-scale framing business. Kalwall, a privately held maker of translucent building systems, brings a portfolio of energy-efficient daylighting solutions used in schools, healthcare facilities, and sports venues.
Apogee did not disclose quarterly financial results alongside the acquisition announcement. The company said it will integrate Kalwall into its Architectural Framing Systems segment and expects the transaction to be immediately accretive to earnings.
Kalwall’s revenue was not specified, but Apogee has previously targeted tuck-in deals that add $50 million to $150 million in annual sales. The acquisition price includes an earn-out based on future performance, according to the company.
Apogee plans to fund the purchase with cash on hand and existing credit facilities. The company ended its fiscal 2025 with $120 million in cash and no outstanding borrowings under its $250 million revolving credit line.
The deal follows a period of steady margin improvement for Apogee, which has benefited from cost controls and a rebound in non-residential construction activity. Management has signaled a willingness to pursue acquisitions that align with its core architectural-products strategy.
Apogee will report full fiscal first-quarter results in late July, including segment-level performance and updated guidance.