Genstar Buys Into Aluminum Company

Target: International Aluminum Corp.

Sponsor: Genstar Capital

Purchase Price: $228 million

Financial Advisor: Seller: Citigroup

Genstar Capital is adding to its roster of mid-market building products companies with its take-private of International Aluminum Corp. for $228 million, or $53 per share, The deal is expected to close in the second quarter, according to Darren Gold, a managing director with Genstar.

International Aluminum Corp. generates $36 million of EBITDA, and has an enterprise value of $209 million.

Genstar Capital used its $475 million Genstar Capital Partners IV fund, which closed in the fourth quarter of 2004 and is about 60 percent invested, to make the acquisition, according to Gold. CIBC of Toronto is providing the debt financing for the deal, though the exact structure is not yet in place. “We’re contemplating a first-lien, second-lien structure, with more of it going to the first-lien,” Gold said.

International Aluminum has three divisions. The commercial division, the company’s largest, sells products such as storefronts for big box retailers, aluminum siding for large office buildings, and doors to office buildings. Its aluminum extrusion division takes raw aluminum and fabricates it into different shapes and sizes to form fabricated aluminum products. The company also has a residential windows and doors division.

International Aluminum is based in Monterey Park, near Los Angeles, and has 20 facilities located throughout North America.

Citigroup ran the auction for International Aluminum in the second quarter and Genstar Capital and International Aluminum signed the deal on Jan. 9., Gold said.—E.B.