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Headwaters buying Kleer Lumber

SOUTH JORDAN, Utah (AP) -- Building products company Headwaters says it is buying Kleer Lumber to expand its distribution network and meet growing demand for cellular PVC building products.

Terms were not disclosed.

Kleer Lumber Inc. makes cellular PVC trim board and moulding products. Cellular PVC is a kind of "synthetic wood" that is more durable and easier to care for in many of the same building applications as natural wood.

Headwaters Inc. said Monday that it plans to add Kleer Lumber's products to its national distribution network. Kleer mainly distributes its products to independent lumber yards and home-improvement centers in the Northeast and Mid-Atlantic.

Headwaters expects the acquisition to close by year-end and immediately add to its earnings per share.

Headwaters also announced a public offering of 7.6 million shares of its common stock. The company is giving the underwriters a 30-day option to buy up to an additional 1.1 million shares.

Headwaters will use the proceeds to help pay for the Kleer acquisition and for general corporate purposes.

The South Jordan, Utah, company's stock fell 14 cents to $7.15 in midday trading.