COLUMBUS, Ohio — Worthington Enterprises has acquired Elgen Manufacturing of Closter, New Jersey.
Elgen designs and manufactures HVAC parts and components, ductwork, and structural framing primarily used in commercial buildings throughout North America. Recurring demand for maintenance, repair, and remodeling of existing HVAC installations is a key driver of volume and spending in these markets, a press release from Worthington said.
“The addition of Elgen aligns closely with our strategy to build and acquire businesses with leadership positions in niche markets,” said Joe Hayek, Worthington’s president and CEO. “Elgen’s manufacturing processes, go-to-market strategies, and end markets mirror ours, creating meaningful opportunities for synergies and growth. We are excited to welcome the Elgen team to Worthington Enterprises and look forward to growing together as their 250 employees become part of our people-first, performance-based culture.”
Elgen will become part of Worthington’s building products division, which has a portfolio of critical building systems and components for heating, cooling, construction, and water applications, as well as architectural and acoustical grid ceilings and metal framing and accessories. Elgen’s steel-based products are used by contractors to renovate, repair, and build the HVAC infrastructure within commercial buildings. Its sales strategy features direct sales to contractors and strategic distributor partnerships that broaden reach into niche markets, Worthington’s press release said.
“Elgen’s HVAC componentry and recurring revenue through maintenance, repair, and remodel are a natural fit with our products for the building envelope,” said Jimmy Bowes, president, of Worthington’s building products division. “We believe we can create new value for Elgen’s customers and generate operational efficiencies for the business by leveraging Worthington’s domestic footprint, manufacturing expertise, and purchasing power.”
“This is a milestone in our rich history and one that we believe accelerates our ability to serve our customers and retain and attract a top workforce,” said David Young, Elgen’s CEO. “We look forward to supporting the continued growth of Worthington Enterprises and remain committed to delivering innovative products and excellent service to our customers.”
Young and other members of the Elgen leadership team will remain with the business and maintain similar roles and responsibilities.
Worthington acquired Elgen for approximately $93 million, funded with cash on hand. For the 12 months ending April 30, Elgen generated net sales of nearly $114.9 million.