After the sale that Royal Building Products made with Westlake Chemical Corp., the company is now launching its new grooved decking as well as cedar shake that is expected to be next huge seller thus the company decided to add to its capacity.
Nowadays, contractors are looking for products that are easy to install while consumers are in search for decks made of natural wood but would require no maintenance. These are the reasons why there is a higher demand for the growing lines of decking made of cellular PVC named Zuri while the siding is named Cellular Celect. This is according to the senior vice president of the company, Simon Bates, in a statement made during the International Builders’ Show.
Royal is a subsidiary of Royal Group Inc. based in Woodbridge, Ontario and the parent company is Axiall Corp. It was only last summer when it was acquired by Westlake, a company based in Houston, for $33 for every share. The enterprise value of the sale amounted to approximately $3.8 billion which already accounts to the debt and certain liabilities of Axiall.
Before the deal was finalized, there a lot of issues surrounding the deal including heated negotiations, rumor of takeover bid coming from Lotte Chemical Corp. and threats of entering a proxy fight. Eventually, Axiall and Westlake were able to agree and the acquisition resulted to the second biggest producer of PVC found in North America and the leading company in manufacturing vinyl building products.
Bates said that 2016 was a challenging year for them since the transaction only started on August 31. He admitted that the transition was quite smooth afterwards especially on the part of the people under the building products. They feel that they are already in a good place knowing that they are wanted by a large and successful company such as Westlake.
Royal was able to grow because of thseir two top products – Zuri decking and Celect siding. Bates is optimistic that their newly released groove decking will outshine the other regular boards. It is common for newer and better products to be used by contractors such as Fiberon Decking.