Apogee Enterprises announced that it has entered into a definitive agreement to acquire Kalwall Companies from the Keller family for up to $115 million in a cash-free, debt-free transaction. The deal includes $105 million in cash at closing and up to $10 million in earnout payments tied to financial performance through the third quarter of Apogee’s fiscal 2027. The acquisition is expected to close during the company’s fiscal 2027 second quarter, subject to customary closing conditions.
Based in the United States, Kalwall is a vertically integrated manufacturer of high-performance translucent daylighting solutions. The company is known for its proprietary polymer and coating application processes and serves a diverse customer base across architectural markets. Its portfolio includes the Kalwall®, Structures Unlimited, and Kal-lite® brands, which are widely recognized in their respective applications.
The acquisition aligns with Apogee’s growth strategy by adding a differentiated business that expands its portfolio of high-performance building envelope solutions. Apogee plans to integrate Kalwall into its Architectural Glass segment, creating a broader offering of high-performance substrates and enhancing cross-selling opportunities across its architectural products portfolio.
Apogee expects the integration to generate approximately $4 million in operational and cost synergies by the end of fiscal 2029. Within the first 12 months of ownership, Kalwall is expected to contribute approximately $85 million in revenue and an adjusted EBITDA margin of about 15%, with a long-term margin target of 20%.
The company said the transaction is expected to be accretive to adjusted diluted earnings per share in the first year following completion and support its long-term revenue growth and adjusted EBITDA margin objectives. The acquisition will be funded through cash on hand and Apogee’s existing credit facility.
Apogee noted that additional details regarding the strategic and financial impact of the acquisition will be provided during its first quarter fiscal 2027 earnings conference call. The company also expects to file a Current Report on Form 8-K with the U.S. Securities and Exchange Commission describing the transaction and including the definitive agreement as an exhibit.
KEY QUOTES:
“Kalwall is a strong strategic fit that expands our portfolio of differentiated solutions with a track record of operating excellence. This acquisition strengthens our Architectural Glass segment and accelerates our leadership in high performance building envelope solutions.”
Don Nolan, Executive Chair and CEO, Apogee Enterprises
“We are extremely proud of the business the Keller family built over the past 71 years. We believe Apogee is the best partner to lead the business through its next phase of growth for decades to come and are excited about the future for our customers and employees.”
Kathy Garfield, President, Keller Companies
