Garco Building Systems agrees to sale

Garco Building Systems Inc., a half-century old company specializing in designing, manufacturing and distributing steel building systems, has entered into an agreement to be purchased by a national corporation.

NCI Building Systems Inc. is paying $16.5 million to buy the Airway Heights-based company in a deal that is expected to close within 30 days, said Garco President Bill Savitz.

NCI, which is publicly-traded and had sales of $1.13 billion in 2005, will bring significant funding and technology to the business, said Savitz, adding that those benefits will be key to staying competitive in light of changing building codes.

“We had pretty well achieved everything we could accomplish as far as taking the company to the next level,” Savitz said.

Garco was started in 1958. In 1996, Savitz and business partners Mark Radmaker, John Pargman and Paul Millar purchased the company. Since then, sales have grown from $14 million a year to $35 million in 2006.

Last year, Savitz and Radmaker bought out Pargman and Millar, who retired.

NCI sought them out for the deal because Garco has a large number of industrial, commercial, institutional and agricultural clients in the northwestern United States and western Canada, Savitz said.

Although NCI operates 44 manufacturing and distribution facilities in 17 states, Mexico and Canada, the corporation had no operations in the northwest.

A released statement from Norm Chambers, presidents and CEO of NCI, said the acquisition will strengthen NCI’s presence in attractive growth markets in the northwestern United States and western Canada. Garco’s 33-acre site is also suitable for future expansion, Chambers said. Garco is located south of U.S. Highway 2 on Garfield Road.

Garco’s 150 workers will be offered comparable or enhanced employment agreements with NCI, said Savitz, who will remain as president. The business will continue to operate under the name Garco.