Officials from AGC Inc. announced the company will sell its North American architectural glass business to Cardinal Glass Industries, according to a June 15 AGC release. The companies reached an agreement on the sale today.
The $450 million transfer deal is subject to the approval of the related authorities, and the earliest closing would be July 2021, according to AGC.
The glass facilities subject to sale include AGC’s Greenland, Tennessee, float glass manufacturing plant with two furnaces and one coater; its coating facility in Abingdon, Virginia; and a float plant in Spring Hill, Kansas, with one furnace, according to the release.
The North American architectural glass business became a target for sale in the AGC plus-2023 management policy, announced in February. According to AGC officials, “AGC has strived for improvements of the profitability and asset efficiency of its architectural glass business, which was designated as one of the AGC Group’s priority issues.”
They continued, “AGC has concluded that it will create further growth opportunities by transferring it to Cardinal Glass Industry, which has business trading experience with AGC in the past and is expected to make the most effective use of AGC’s assets and personnel.”
“Our capital investment plan for these operations will allow us to sustain even higher volumes in a very tight North American glass market,” says Roger O’Shaughnessy, CEO of Cardinal Glass Industries.
Cardinal Glass Industries is a private, management-owned company headquartered in Eden Prairie, Minnesota, with more than 8,000 employees operating from 36 factories nationwide.