Worthington Enterprises has acquired Elgen Manufacturing, a New Jersey-based designer and manufacturer of HVAC components, for $93 million. This acquisition enhances Worthington’s market position in the HVAC sector, particularly within commercial building applications, where Elgen generated net sales of $114.9 million and EBITDA of $13.3 million in the past year. Approximately 250 employees from Elgen will join Worthington following the acquisition.
According to Worthington’s CEO, Joe Hayek, the acquisition aligns with the company’s strategy to expand its business in niche markets, potentially leading to significant growth and operational synergies. The deal is expected to leverage Elgen’s established sales and distribution capabilities while creating efficiencies in Worthington’s operations.
However, the acquisition raises concerns about financial pressures on Worthington’s cash reserves, particularly given the economic uncertainties, and the modest profitability of Elgen prior to the acquisition.
