Cornerstone Building Brands, Inc. CNR has divested the Roll-up Sheet Door business, DBCI, to Janus International Group, Inc. JBI, thereby optimizing its portfolio for further growth in large, deep markets. The all-cash transaction is valued at $168 million.

The company expects to spend the net proceeds in strategic initiatives toward profitable growth, operational excellence and attaining net debt leverage target of 2.0-2.5x.

It has been focusing on unlocking values by monetizing strong assets at an attractive multiple and optimizing portfolio for sustainable growth.

Efforts to Drive Growth

In an attempt to fuel high-growth, high-profitability businesses, the company has been divesting assets. In sync with this, it has also completed the Insulated Metal Panels business divestiture to Nucor Insulated Panel Group Inc. in a cash transaction worth $1 billion. Cornerstone Building expects to utilize post-tax transaction proceeds to pay down a portion of its secured credit facilities, invest in organic growth and efficiency projects as well as strategic acquisitions.

Inorganic Drive

The company has been actively involved in acquisitions and divestiture to drive growth. On Apr 30, 2021, it acquired Prime Windows LLC that serves residential new construction and repair and remodel markets with energy efficient vinyl window and door products from two manufacturing facilities in the United States. This buyout has expanded Cornerstone Building manufacturing capabilities in the Western United States.

Owing to the company’s continuous efforts to optimize portfolio, it now expects third-quarter net sales between $1,385 million and $1,435 million, depicting growth from $1,227 million reported a year ago.

Image Source: Zacks Investment Research

Shares of this Zacks Rank #1 (Strong Buy) manufacturer of exterior building products have gained 68.1% year to date, outperforming the Zacks Building Products - Concrete and Aggregates industry’s 36.3% rally. The company, which shares space with Eagle Materials Inc. EXP and Martin Marietta Materials, Inc. MLM in the same industry, has been benefiting from higher sales growth and strong performance across all business segments backed by strong residential demand and price actions that offset inflationary pressures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report

Eagle Materials Inc (EXP) : Free Stock Analysis Report

Cornerstone Building Brands, Inc. (CNR): Free Stock Analysis Report

Janus International Group, Inc. (JBI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research