Acquisitions

6 Months Ended

Aug. 29, 2026

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

Acquisitions

Acquisition

On July 1, 2026, we completed the acquisition of Kalwall for $104.7 million in cash and an estimated $7.5 million of contingent consideration in the form of an earn-out. Kalwall is a U.S.-based, vertically integrated manufacturer of high-performance translucent day lighting solutions. The Kalwall business activity is included in our Glass Segment.

The total purchase consideration was $112.2 million of cash and contingent consideration, net of a preliminary net working capital adjustment of $0.8 million and cash acquired of $5.1 million. The acquisition was funded with borrowings under our existing credit facility. During the three-month and six-month period ended August 29, 2026, we incurred acquisition costs of $1.6 million and $2.4 million, respectively, which are included in selling, general and administrative expenses in our Consolidated Results of Operations.

The purchase of Kawall includes contingent consideration of up to $10 million, which may be earned this fiscal year upon achieving certain financial targets. As of August 29, 2026, fair value of this contingent consideration is estimated to be $7.5 million, which is included in other current liabilities in our Consolidated Balance Sheet.

We accounted for the acquisition as a purchase of a business and recorded the excess of the purchase price over the estimated fair value of the assets acquired and liabilities assumed as goodwill of $18.9 million. The goodwill recognized is attributable primarily to expected synergies and by providing a more comprehensive glass and substrate offering for the building envelope market by integrating Kalwall into our Glass Segment. The transaction was structured as a stock acquisition; therefore, the associated goodwill is not deductible for tax purposes. We have provisionally determined the fair values of the acquired intangible assets and the economic lives of the assets acquired. We assigned $34.3 million to customer relationships to be amortized over a 15-year expected life, based on Kalwall's historical customer attrition rates. We assigned $13.1 million to trade names to be amortized over a 15-year expected life. We assigned $2.4 million to contract backlog to be amortized over a 6-month expected life.

The following table presents the preliminary estimated fair values of assets acquired and liabilities assumed at the acquisition date:

(In thousands)
Assets:
Cash and cash equivalents	$	5,105
Receivables, net	12,460
Inventories, net	8,735
Other current assets	2,042
Property, plant, and equipment	27,282
Intangible assets	49,800
Goodwill	18,936
Total Assets	124,360
Liabilities:
Accounts payable	2,314
Accrued compensation and benefits	2,893
Other current liabilities	13,558
Other non-current liabilities	918
Total Liabilities	19,683
Net assets recorded	$	104,677

The impact of the acquisition of Kalwall on our consolidated results of operations for the three-month and six-month period ended on August 29, 2026 was $16.4 million of net sales and $0.9 million of net earnings. The net sales and net earnings represent approximately eight weeks of operating results, and include transaction and integration-related costs, interest and the net tax effect.