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California and the West

Maker of building products to go private

January 11, 2007|Ashley Surdin | Times Staff Writer

International Aluminum Corp., a Monterey Park-based manufacturer of aluminum and vinyl building products, agreed Wednesday to be taken private in a $228-million acquisition by a San Francisco investment company.

International Aluminum needed greater financial muscle to expand into new areas, Chief Executive Ronald L. Rudy said.

The company, which employs 1,600 people, makes windows, doors and other products for residential and commercial markets at 15 North American factories, including three in Southern California.

International Aluminum earned $16.2 million on revenue of $281 million in the fiscal year that ended June 30.

Genstar Capital of San Francisco has agreed to pay $53 a share in cash, which is 6% more than International Aluminum's closing price of $50 on Tuesday. The shares closed Wednesday at $52.08, up 4.2%.

"In today's world, for a company of our size, the cost to be public is extraordinary," Rudy said. "It's just not practical. Being private affords us other opportunities for growth.

"We're very pleased with Genstar Capital. They have a tremendous background and experience in the building product sector. With them, financing will not be an issue."

Darren J. Gold, a managing director of Genstar Capital, said there would be no layoffs or management changes at International Aluminum.

"We've got a long history of acquiring middle-market companies in the building products industry and a focus on finding good companies that have the potential to be great companies," Gold said. "We think the business has potential for top-line revenue and for profitability."

The acquisition has the support of Chairman Cornelius Vanderstar, 91, who founded the company 50 years ago. Vanderstar holds a 40% stake in International Aluminum.

Genstar will pay for the debt-free company with equity from its funds and debt financing from CIBC Inc. The transaction, which must receive approval from shareholders and antitrust regulators, is expected to close by early May.

Genstar Capital, founded in 1988, has about $900 million of capital. In August, Genstar acquired OnCure, a private Newport Beach company that owns cancer treatment centers.

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ashley.surdin@latimes.com

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