After acquiring Rough Brothers in June 2015, Gibraltar Industries Inc. has now also announced that it has acquired privately held Nexus Corporation for $25 million in an all cash transaction that was closed yesterday. Gibraltar is a manufacturer and distributor of residential and industrial building products. With the acquisition of Colorado-based Nexus, the company continues to strengthen its position in the commercial greenhouse market in the United States. “The acquisition of Nexus complements our RBI greenhouse company and positions the business as a leader in the U.S. commercial greenhouse market,” said Gibraltar Chief Executive Officer Frank Heard in a news release.
The acquisition of Nexus is big news in the U.S. greenhouse industry. Following the acquisition of Rough Brothers in June 2015, it is the second large takeover of a U.S. greenhouse manufacturer. Where the acquisition of Rough Brothers was mostly aimed at the takeover of RBI's solar business, the acquisition of Nexus shows that Gibraltar has intentions to increase its presence in the commercial greenhouse industry; a market that is estimated at approximately $250 million and is expected to grow at a 10% rate in 2017, driven by increased demand for organic, locally grown food as well as demands from the floriculture market and public and private research.
According to the news release, Nexus is expected to generate revenues of $30 million in the year ending December 31, 2016. Over the last couple of years Nexus has been involved in several remarkable greenhouse projects like Gotham Greens' rooftop farms in Brooklyn and Chicago, as well as completing many other large and small scale garden centers and grow operations.