INDIANAPOLIS—Firestone Building Products Co. L.L.C., which is part of Bridgestone Americas, plans to acquire Gaco Western to enhance its product portfolio and grow in the liquid coatings roofing sector.
Gaco is a leader in the production and supply of silicone roofing systems and top tier waterproofing and spray foam insulation solutions for a variety of commercial and residential applications, Firestone said.
Included in the proposed transaction is Gaco's manufacturing and research and development facility in Waukesha, Wis., according to a spokesman for Bridgestone Americas, the largest subsidiary of tire and rubber product maker Bridgestone Corp.
Gaco's plant has a work force of more than 180, he noted, and has played an integral role in the company's continued product innovation. The firm has an administrative office in Seattle, where the privately held company is headquartered.
Financial details of the planned deal were not disclosed. The transaction is subject to regulatory approvals and other customary closing conditions.
Adding Gaco to the Firestone Building Products' operation will support "our strategic plan to penetrate high growth adjacent product segments," said Tom Dunn, president of Firestone Building Products.
He said the addition of Gaco's product portfolio will expand the company's offerings, broaden its customer base and enable the firm to access a new contractor network, "and reaffirm our commitment to being a total solutions provider."
It also will put the Indianapolis-headquartered firm in a position to capitalize better on growing demand for liquid coating products, Dunn added.
Founded in 1955, Gaco produces silicone, polyurethanes, epoxies and acrylic liquid coatings for roofs; decking and waterproofing products that protect pedestrian surfaces, concrete, metal and plywood; and open- and closed-cell goods that protect and insulate buildings. Its brands include GacoFlex, GacoRoofFoam and GacoWallFoam.
Indianapolis-based Firestone Building Products' offerings include commercial roofing systems, roofing accessories, green roofing systems and day lighting systems, pond liners, vegetative roofing systems, metal wall panels, insulation, cavity wall construction and geomembranes.
With a larger product portfolio, the spokesman said Firestone Building Products will be able to provide customers with more flexible and cost-effective solutions.
For building owners, the company will be able to offer an alternative to a full tear-off roof, "providing a repair solution at a lower price point."
For contractors, "the addition of a coatings-based product allows for easier installation, helping alleviate ongoing concerns regarding labor shortages," she said, adding that overall the purchase strengthens Firestone Building Products' industry leading position in commercial roofing.
For Gaco, the purchase by Firestone Building Products makes sense, according to Chairman and CEO Peter Davis.
"With over 60 years' experience providing high quality products to our customers, we have successfully built a leading position in the silicone roofing and waterproofing segments," Davis said.
He added that Firestone Building Products "is a clear leader within the roofing industry and has a strong vision for the broader building envelope—combining best-in-class service, product and innovation with a substantial distribution platform."
Joining forces with the firm will allow Gaco to continue to increase its R&D efforts, "deliver innovative products to our customers and offer additional career opportunities to our employees," Davis said.