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Masonite International Corp., Tampa, Fl., has agreed to acquire patio door/window manufacturer PGT Innovations, Nokomis, Fl., for $3 billion in cash and stock.
Under the terms of the deal, PGT Innovations shareholders will receive $41 per each PGT share they own, comprised of $33.50 in cash and $7.50 in Masonite stock. The price represents a 24% premium over PGT’s 30-day volume weighted average share price. Upon completion of the deal, Masonite shareholders will own roughly 84% of the combined company, with PGT Innovations shareholders owning approximately 16%.
The addition of PGT provides Masonite with complementary product offerings in adjacent categories, attractive geographies, expanded routes to market and cross-selling opportunities, enhanced engineering and manufacturing capabilities, as well as a significantly stronger growth and financial profile.
“The acquisition of PGT Innovations accelerates our strategy and is an exciting and transformational step in the nearly 100-year history of Masonite,” said president and CEO Howard Heckes. “The combined business will be well positioned to provide homeowners with differentiated solutions across both the interior and exterior openings of the home, while significantly expanding our geographic presence and growth opportunities. The PGT Innovations team shares our commitment to innovation and delivering premium products and is tightly aligned to the three strategic pillars that guide Masonite: delivering reliable supply, driving product leadership, and winning the sale.”
Heckes will continue to serve as CEO of Masonite. Jeff Jackson, PGT Innovations CEO, and a second PGT Innovations director will join the Masonite board of directors.
PGT brands include CGI, PGT Custom Windows & Doors, WinDoor, Western Window Systems, Anlin Windows & Doors, Eze-Breeze, Eco Window Systems, NewSouth Window Solutions, and Martin Door.