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PGT To Acquire CGI Windows & Doors Holdings For $111M

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PGT, Inc. (Nasdaq: PGTI), the nation's leading manufacturer and supplier of residential impact-resistant windows and doors, announced today that it has entered into a definitive agreement with CGI Windows & Doors Holdings, Inc. (a portfolio company of Cortec Group Fund, IV, LP) pursuant to which CGI will become a wholly owned subsidiary of PGT. The transaction, valued at approximately $111 million, is consistent with PGT's plan to grow strategically while contributing to earnings growth through targeted acquisitions of complementary specialty products. The acquisition is expected to be accretive in 2015.

The transaction will combine two successful companies committed to serving impact-resistant window and door industry. The acquisition is expected to:

Enhance PGT's leadership position in the growing impact-resistant window and door industry
Strengthen the Company's ability to compete against national suppliers and other storm protection systems
Diversify and broaden PGT's brand portfolio, including the addition of impact-resistant entry doors
Create synergies by maximizing efficiencies and scale including purchasing and logistics
Broaden manufacturing footprint and capabilities
"The acquisition of CGI Windows & Doors is consistent with our stated growth plan to acquire revenue generating products that leverage our core capabilities. More importantly, as we learned more about CGI and met with their team, it became clear that our respective missions and cultures are really well aligned," said Rod Hershberger, Chairman of the Board and Chief Executive Officer of PGT. "This is an ideal acquisition for PGT, and it will provide important synergies while enhancing our leadership position within the industry. I couldn't be more thrilled as this acquisition will allow us to diversify our brand and product portfolios in a cost-effective manner. By adding top line sales and achieving synergies, we are confident this will drive growth in stockholder value."

Subject to customary closing conditions, the transaction is expected to close in September. Deutsche Bank and Keybanc NA have committed to providing a long-term debt facility of $235 million which, together with cash on hand, will be used to consummate the acquisition, repay existing indebtedness and for general corporate purposes. To learn more about the details of the transaction, there is an upcoming conference call related to our earnings release.

"A very exciting time for both companies, as this strategic and complementary combination will bring significant benefits to our collective customers," said Steve Dawson, Executive Vice President of Sales of CGI. "Our customers can expect to benefit from expanded product portfolios and increased manufacturing capabilities. In addition, our employees will have the advantage of being part of a larger organization, well positioned to meet the evolving needs of the 21st century consumer of impact-resistant windows and doors."

After the transaction closes:

CGI will continue to operate and manufacture products in Miami, Florida.
CGI will remain a separate and distinct brand in the marketplace.
Both Companies will leverage best-practices and synergies to provide incremental value to employees, customers, business partners and stockholders.
"We look forward to welcoming the CGI team to our family. The capabilities and assets they bring will further advance PGT's leadership position in the industry," commented Jeff Jackson, PGT's President and Chief Operating Officer. "Together with our valued partners, we will remain focused on delivering the best customer service in the industry and leading the industry with innovative products and services. This focus combined with our strong financial position ensures that PGT is poised for profitable growth and long-term stockholder benefits."

Posted-In: News M&A Press Releases

 

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