Will Gibraltar's $1.3B OmniMax Buyout Reinvent Its Growth Story?

Gibraltar Industries, Inc. ROCK has entered into an agreement to acquire OmniMax International from funds managed by Strategic Value Partners, LLC and its affiliates for $1.335 billion in cash.

ROCK stock dipped 20.3% during yesterday’s trading hours and inched up 0.6% in the after-hours.

Perks of ROCK’s New Buyout

OmniMax is a leading provider of residential roofing accessories and rainware solutions, which is expected to generate $565 million in adjusted net sales and $110 million in adjusted EBITDA in 2025. This strategic acquisition will strengthen Gibraltar’s strategy to expand in residential building products and enhance customer experience through OmniMax’s complementary brands and operational capabilities.

Notably, the purchase price of $1.335 billion reflects an 8.4x effective adjusted EBITDA multiple, $35 million in anticipated cost synergies and about $100 million in cash tax benefits. Post closure of the buyout, ROCK’s Residential business is expected to generate more than 80% of the consolidated revenues and adjusted EBITDA. Besides, this deal is expected to be immediately accretive to the company’s EBITDA margins and adjusted EPS, supported by $35 million in cost synergies by 2028.

Gibraltar has secured committed financing through new term loan facilities of up to $1.3 billion and an expanded $500 million revolver. The acquisition is expected to close in the first half of 2026, upon pending regulatory approvals.

Gibraltar’s Value Creation Strategy Bodes Well

Gibraltar’s strategy is anchored on three core pillars, including Business System, Portfolio Management and Organization Development. Underscoring these pillars, the company has been working on completing business system conversions to a single system across the Residential segment by the end of 2026.

Moreover, to optimize its mix of businesses and align resources with higher-growth and higher-margin markets, it is facilitating capital allocation across Residential, Agtech, and Infrastructure while divesting non-core operations such as the Renewables business (discontinued operations as of June 30, 2025).

Also, inorganic methods like acquisitions are a core part of value creation for ROCK. These actions, combined with robust backlog growth and disciplined cost management, reflect a sharper focus on scaling leadership positions in resilient end markets and reinforcing long-term shareholder value.

ROCK Stock’s Price Performance

ROCK stock has trended down 24.5% in the past three months, underperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 index.

The ongoing weakness in single-home and multi-family new construction starts, slower mail product sales, a large CEA project delay, lower volumes and inefficiency related to the supplier transition are undermining investors’ sentiments, especially in the near term. Nonetheless, the long-term prospects of the company look promising given the accretive acquisitions, business restructuring and a healthy balance sheet.

ROCK’s Zacks Rank & Key Picks

Gibraltar currently carries a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the same sector.

Comfort Systems USA, Inc. FIX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comfort Systems delivered a trailing four-quarter earnings surprise of 30.4%, on average. The stock has moved up 32.2% in the past three months. The Zacks Consensus Estimate for Comfort Systems’ 2025 sales and earnings per share (EPS) implies an increase of 24.4% and 80.2%, respectively, from a year ago.

Great Lakes Dredge & Dock Corporation GLDD presently sports a Zacks Rank of 1. Great Lakes Dredge & Dock delivered a trailing four-quarter earnings surprise of 65.5%, on average. The stock has inched up 3.9% in the past three months. 

The Zacks Consensus Estimate for Great Lakes Dredge & Dock’s 2025 sales and EPS imply an increase of 11.6% and 31%, respectively, from a year ago.

Everus Construction Group, Inc. ECG currently sports a Zacks Rank of 1. Everus Construction delivered a trailing four-quarter earnings surprise of 51.8%, on average. The stock has gained 14.2% in the past three months.

The Zacks Consensus Estimate for Everus Construction’s 2025 sales and EPS imply an increase of 25.4% and 27.8%, respectively, from a year ago.

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This article originally published on Zacks Investment Research (zacks.com).

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