A Portland-area roofing manufacturer said Thursday it will be sold to a Swiss building supply company in a billion-dollar deal.
Malarkey Roofing Products, founded by Herbert Malarkey in 1956 and still owned by the Malarkey family, will be sold to The Holcim Group, based in Zug, Switzerland. Holcim said the cash deal is valued at $1.35 billion. The sale is expected to close early next year.
Malarkey makes shingles and other roofing materials at its factory in North Portland, as well as others in California and Oklahoma. It employs 500 across the three locations.
“We couldn’t be more thrilled,” said Gregory Malarkey, the Portland company’s president. “For decades, we’ve sought a company that agrees with our vision, aligns with our values, and can help us accelerate our growth strategy. Today, we found it in Holcim.”
It was not immediately clear what the sale could mean for Malarkey’s operations in Oregon or elsewhere. Holcim said Malarkey’s business footprint in the West and South complemented that of Firestone Building Products, a commercial roofing company headquartered in Tennessee that it acquired earlier this year.
But it also said the sale would create $40 million in “synergies” to be realized over a three-year period, suggesting some overlap.
Holcim said Malarkey would earn $120 million in 2022 — excluding interest, taxes, depreciation and amortization — on $600 million in sales.
State environmental regulators slapped Malarkey with at $2.1 million fine in October, three years after the company disclosed it may have been emitting a large amount of formaldehyde, a suspected carcinogen, over the course of a decade.
The fine was the largest in the Oregon Department of Environmental Quality’s history.
The company installed new pollution controls in July 2020.
— Elliot Njus