AZEK Bolsters Outdoor Living Product Offerings with StruXure Buyout


This article was originally published on TipRanks.com

To bolster its presence in the outdoor living products segment, The AZEK Company Inc. (AZEK) has acquired StruXure Outdoor, Inc., which engages in designing and manufacturing high quality and innovative aluminum pergolas and cabanas.

With this deal, AZEK will be able to reap the benefits of increased cross-marketing and cross-selling opportunities. StruXure’s smart pergolas and cabanas are low maintenance, and sustainable solutions, which complement existing outdoor living products of AZEK’s TimberTech.

As per the agreed terms, StruXure will operate as a wholly-owned subsidiary of AZEK and its CEO Scott Selzer will continue to lead StruXure’s day-to-day operations. Financials of StruXure will be reported under AZEK’s Residential segment financial reporting.

Notably, AZEK expects StruXure to generate about $40 million of revenue for the remaining Fiscal Year 2022.

The CEO of AZEK, Jesse Singh, said, “We are excited to announce AZEK’s acquisition of StruXure as we expand into this natural market adjacency and continue to build leading positions across the large and growing outdoor living category.”

Stock Rating

Last month, J.P. Morgan analyst Michael Rehaut upgraded AZEK’s rating to Buy from Hold with a price target of $56 (22.1% upside potential).

Consensus among analysts is a Strong Buy based on 6 unanimous Buys. The average AZEK price target stands at $54 and implies upside potential of 17.8%.

Negative Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on AZEK with 6.2% of investors on TipRanks decreasing their exposure to the stock over the past 30 days.

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