COLUMBUS: Worthington Enterprises (NYSE: WOR) announced Wednesday it has acquired Elgen Manufacturing, a New Jersey-based producer of HVAC components, for approximately $93 million in cash.
Elgen, headquartered in Closter, specializes in steel-based ductwork, framing and HVAC parts used in commercial buildings across North America. The company will join Worthington’s Building Products segment, broadening its offerings in infrastructure systems and expanding its contractor-focused distribution model.
“Elgen aligns with our strategy to invest in niche market leaders,” Worthington CEO Joe Hayek said in a statement. “Their operations, customers and markets mirror ours, creating strong synergy potential.”
Elgen generated $114.9 million in net sales and $13.3 million in EBITDA for the 12 months ending April 30. The business employs about 250 people, all of whom are expected to join Worthington’s “people-first, performance-based culture.”
Jimmy Bowes, president of Worthington’s Building Products segment, said the acquisition strengthens the company’s position in HVAC infrastructure. “Elgen’s recurring revenue from maintenance and renovation fits naturally with our building envelope solutions,” he said.
Elgen’s CEO, David Young, called the deal a “milestone” that will help scale innovation and customer service. He and the current leadership team will remain in place.
Worthington said the deal enhances its domestic footprint and leverages purchasing power and operational efficiency to drive future growth.