Janus International Group Announces Acquisition of Terminal Maintenance and Construction

Rhea-AI Summary

Janus International Group (NYSE: JBI), a leader in access control technologies and building products for commercial and industrial sectors, announced the acquisition of Terminal Maintenance and Construction (TMC). TMC specializes in trucking terminal services including renovation, remodeling, and maintenance, primarily in the Southeast. This strategic acquisition aims to support the growth of Janus's Facilitate division, enhancing their facility maintenance services. CEO Ramey Jackson highlighted that the merger will strengthen Janus's project management capabilities and contribute to their strategic growth plan.

Positive

• Janus International Group acquires Terminal Maintenance and Construction, enhancing service offerings.
• The acquisition will support the growth of Janus's Facilitate division.
• TMC's integration will improve Janus's project management capabilities.
• Expected strategic growth due to enhanced maintenance services.
• Strengthens Janus’s service portfolio in both storage and commercial sectors.

Negative

• Potential integration challenges between Janus and TMC.
• Short-term disruptions in operations during the merger process.
• No immediate financial gains or revenue projections disclosed.
• Possible increase in operational costs due to acquisition.

Financial Analyst

Janus International Group's acquisition of Terminal Maintenance and Construction (TMC) could have significant implications for the company's growth and financial performance. From a financial standpoint, the acquisition aims to expand Janus's product offerings and integrate TMC's services into its Facilitate division.

In the $100 billion U.S. commercial and industrial sector, mergers and acquisitions are common strategies to gain market share and enhance service capabilities. By acquiring TMC, Janus can potentially achieve both vertical and horizontal integration, thereby reducing operational costs and increasing revenue streams. The synergies from TMC's expertise in trucking terminal maintenance can enhance Janus's existing project management platform, making it a more compelling offering.

Investors should note that while the acquisition appears promising, it’s essential to monitor the integration process. Successful integration is critical to realizing the projected growth and cost efficiencies. In the short term, there may be integration costs that could impact quarterly earnings, but the long-term benefits could outweigh these expenses if managed well.

Market Research Analyst

This acquisition allows Janus to diversify its revenue streams and enter a new market segment—the trucking industry. The trucking sector is vital to the U.S. economy and usually has stable demand for maintenance and renovation services. TMC's established customer base provides Janus with immediate access to this lucrative market.

Diversification helps mitigate risks associated with reliance on a single industry. Given the economic uncertainties, having multiple revenue sources can strengthen Janus’s market position. Furthermore, TMC’s focus on terminal renovation and remodeling aligns well with Janus’s expertise, potentially creating new synergy opportunities.

From a strategic viewpoint, this acquisition could enhance Janus's competitive edge. However, investors should be cautious and consider the potential challenges, such as cultural integration and alignment of business processes, which can affect the overall success of the acquisition.

TEMPLE, Ga.--(BUSINESS WIRE)-- Janus International Group, Inc. (NYSE: JBI) (“Janus” or the “Company”), a leading provider of cutting-edge access control technologies and building product solutions for the self-storage and other commercial and industrial sectors, today announced its acquisition of Terminal Maintenance and Construction (“TMC”), a premier provider of terminal maintenance services for the trucking industry in the Southeast. While initially continuing to focus on commercial customers, TMC’s integration will ultimately help support the growth of Janus’s Facilitate division, which offers complete facility maintenance services.

Headquartered in Madison, Georgia, TMC’s offerings include trucking terminal renovation, remodeling, and maintenance services.

“We’re very excited to have TMC join the Janus family and are thrilled about the additional innovative solutions that we’ll be providing to our customers in both the storage and commercial spaces we serve,” said Ramey Jackson, Chief Executive Officer. “Merging TMC’s team and capabilities with Janus’s well-established project management platform will strengthen our ability to deliver full maintenance services, which we believe will help bolster our strategic growth plan.”

Massumi + Consoli LLP served as legal advisor to Janus.

About Janus International Group

Janus International Group, Inc. (www.JanusIntl.com) is a leading global manufacturer and supplier of turn-key self-storage, commercial and industrial building solutions, including roll-up and swing doors, hallway systems, re-locatable storage units and facility and door automation technologies. The Janus team operates out of several U.S. locations and six locations internationally.

About Terminal Maintenance and Construction

Terminal Maintenance and Construction performs trucking terminal renovation, remodeling, and maintenance services for major trucking customers in the Southeast.

Forward-Looking Statements

Certain statements in this communication may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this communication are forward-looking statements, including, but not limited to statements regarding Janus’s belief regarding the demand outlook for Janus’s products and the strength of the industrials markets and statements regarding TMC, including Janus’s ability to integrate the TMC business, its team and its capabilities with Janus’s operations, achieve expected synergies and grow Janus’s operations, and otherwise realize the intended benefits of the acquisition. When used in this communication, words such as “may,” “should,” “will,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions, as they relate to the management team, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of Janus’s management, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements, many of which are outside of Janus’s control.

In addition to factors previously disclosed in Janus’s reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) risks related the industries in which Janus operates, including the self-storage and (following the acquisition of TMC) trucking industries; (ii) the highly competitive nature of the industries in which Janus operates, including the self-storage and (following the acquisition of TMC) trucking industries, and Janus’s ability to compete therein; (iii) litigation, complaints, and/or adverse publicity; (iv) cyber incidents or directed attacks that could result in information theft, data corruption, operational disruption, and/or financial loss; and (v) the risk that the demand outlook for Janus’s products and/or services may not be as strong as anticipated.

There can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Janus is not under any obligation and expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Janus and is not intended to form the basis of an investment decision in Janus. All subsequent written and oral forward-looking statements concerning Janus or other matters and attributable to Janus or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above and under the heading “Risk Factors” in Janus’s most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as updated from time to time in amendments and its subsequent filings with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240520231769/en/

Investor Contact

Sara Macioch

Senior Director, Investor Relations, Janus International

770-562-6399

IR@janusintl.com

Media Contact

Suzanne Reitz

Vice President of Marketing, Janus International

770-746-9576

Marketing@Janusintl.com

Source: Janus International Group, Inc.

FAQ

What did Janus International Group announce?

Janus International Group announced the acquisition of Terminal Maintenance and Construction.

What industry does Terminal Maintenance and Construction serve?

Terminal Maintenance and Construction serves the trucking industry with renovation, remodeling, and maintenance services.

How will the acquisition of TMC benefit Janus International Group?

The acquisition is expected to enhance Janus's Facilitate division and improve their project management capabilities, supporting strategic growth.

Who is the CEO of Janus International Group?

The CEO of Janus International Group is Ramey Jackson.

Where is Terminal Maintenance and Construction headquartered?

Terminal Maintenance and Construction is headquartered in Madison, Georgia.