Wood-alternative decking manufacturer Trex sold its commercial business to Minneapolis-based Sightline Commercial Solutions for $8.25 million, according to a Trex Form 8-K filing with the U.S. Securities and Exchange Commission. Winchester, Va.-based Trex estimated it will recognize a loss on sale of approximately $13 million to $16 million after taxes.
For the nine months ended Sept. 30, 2022, the Trex Commercial segment had sales of $35.1 million and incurred a net loss of $2.4 million. Sightline is a fabricator and supplier of architectural railing, metal glazing, and portable platform solutions.
“During our ownership of Trex Commercial, its products were installed in some of the largest and most prestigious sporting and entertainment venues in the country,” Bryan Fairbanks, president and CEO of Trex, said in a prepared statement. “Trex Commercial was also instrumental in helping the Company capitalize on the growing trend toward more modern, commercially inspired railing designs with the launch of our successful rod rail system, the new glass railing system, and numerous other innovations that will drive future value for Trex."
According to Fairbanks, current Trex Commercial staff will be offered employment by Sightline.
Trex acquired SC Railing, a manufacturer and supplier of architectural railing, in 2017. In December 2017, the company was rebranded as Trex Commerical Products. After the sale of Trex Commercial, Trex said it will sharpen its focus on the residential outdoor living category.
“The divestiture of the Trex Commercial segment reflects our decision to focus on driving the most profitable growth strategy for Trex and its shareholders through the execution of our outdoor living strategy,” Fairbanks added. “With the sale complete, we will dedicate our resources to accelerating conversion to composites from wood and further strengthen our leadership position in the outdoor living category.”