Headwaters Buys Assets Of Metals USA's Roofing Products Business - Quick Facts

(RTTNews) - Headwaters Inc. (HW) announced Monday that it has acquired the assets of Metals USA's roofing products business or "Gerard". Founded in 1981, Gerard is a manufacturer of stone coated metal roofing materials in the United States. Gerard sells seven primary metal profiles, including classic tile, barrel vault, and canyon shake. This niche roofing product combines aesthetically pleasing profiles resembling tile, shake, or slate with a fire proof material and a low lifetime installed cost.

"The $28 million transaction will be immediately accretive to earnings. We are funding the transaction with existing balance sheet cash, and of course, will benefit from financial leverage as the operating returns significantly exceed the cost of our debt," said Don Newman, Chief Financial Officer.

The company noted that its net debt to adjusted EBITDA ratio will increase slightly with the use of cash, but it remains on track to achieve its desired leverage ratio in 2015.