PGT, Inc. PGTI is acquiring Orlando, FL based high performance windows and door maker, WinDoor, in a deal valued at $102 million. The acquisition will be accretive to earnings within 12 to 18 months, diversify PGT’s portfolio and enhance its leadership position in the growing impact-resistant window and door industry.
For over 15 years, WinDoor, from its 320,000 square foot facility, has been manufacturing high-performance, impact-resistant windows and doors for five-star resorts, luxury high-rise condominiums, hotels and custom residential homes.
Venice, FL based PGT is a leading manufacturer and supplier of residential impact-resistant windows and doors. The acquisition will add the WinDoor brand to its trusted brands, namely, PGT Windows & Doors and CGI Windows & Doors. All three units focus on serving the impact-resistant window and door industry. The acquisition is in sync with PGT’s plan of growing strategically while boosting earnings growth through targeted acquisitions of complementary specialty products.
The acquisition will combine PGT’s breadth of capabilities and resources with WinDoor’s specialty expertise in areas such as thermally-broken products and award-winning doors. This will give the company an unmatched impact-resistant product offering for consumers, builders, and architects, thereby adding to its competitive edge. PGT will have a stronger foothold in the commercial and high-end fenestration markets and it will help strengthen its ability to compete against national suppliers and other storm protection systems.
Pursuant to customary closing conditions, the transaction is expected to close in the middle of the first quarter of 2016. Upon completion, WinDoor will become a wholly owned subsidiary of PGT. WinDoor will continue to manufacture products from its Orlando, FL facility as a separate brand.
To fund this acquisition, as well as repay existing debts and for general corporate purposes, Deutsche Bank AG DB and SunTrust Banks, Inc. STI have committed to provide a long-term debt facility of $350 million.
In line with its strategies, PGT completed the acquisition of CGI Windows & Doors Holdings, Inc for $111 million last year. This bolstered PGT’s position in the growing impact-resistant window and door industry. The company’s focus on actively evaluating acquisition opportunities in windows and doors will drive long-term growth. Moreover, a strong housing market and recovery in new housing construction are vital tailwinds.
PGT is poised to benefit from improving production flows, a decrease in lead-time and increase in backlog. The company also aims to expand its glass capacity with the addition of more glass cutting and tempering equipments.
PGT currently has a Zacks Rank #4 (Sell). A better-ranked stock in the sector worth considering is Gibraltar Industries, Inc. ROCK, sporting a Zacks Rank #1 (Strong Buy).
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