PGT, Inc. to Acquire WinDoor, Inc.

PGT, Inc.

, the nation's leading manufacturer and supplier of residential impact-resistant windows and doors, announced it has signed a definitive agreement to acquire WinDoor, Incorporated. Located in Orlando, Florida, WinDoor provides high-performance, impact-resistant windows and doors for five-star resorts, luxury high-rise condominiums, hotels and custom residential homes. The acquisition combines the strengths of PGT, Inc. and WinDoor, Inc. by leveraging PGTI's breadth of capabilities and resources with WinDoor's specialty expertise in areas such as thermally-broken products and award-winning doors to deliver an unparalleled impact-resistant product offering to consumers, builders, and architects. "WinDoor's seasoned management team has done a fantastic job of building a solid and successful business that produces exceptional products," stated Rod Hershberger, Chairman of the Board and Chief Executive Officer of PGTI. "We are most excited, however, that PGTI and WinDoor share a strong family-centric culture that values quality and craftsmanship. I am very pleased to announce the addition of another strong brand of products into our PGTI portfolio." WinDoor, Inc. will become a wholly owned subsidiary of PGTI. The transaction, valued at approximately $102 million, is consistent with PGTI's plan to grow strategically while contributing to earnings growth through targeted acquisitions of complementary specialty products. This acquisition will improve PGTI's EBITDA margin, and the deal is expected to be earnings accretive within 12 to 18 months, depending on the cost of capital for the new credit facility. The transaction will introduce a third brand to the PGTI portfolio to include PGT, CGI, and WinDoor. All three business units focus on serving the impact-resistant window and door industry. The acquisition is expected to: Enhance PGTI's leadership position in the growing impact-resistant window and door industry while offering its customers a wide variety of offerings Add a high quality company with strong margins; for 2015 WinDoor's margins will be higher than PGTI's Diversify and broaden PGTI's brand and product portfolio, including the addition of thermally-broken products and more comprehensive sliding & swing door product lines Increase penetration into the commercial and high-end fenestration markets Strengthen the Company's ability to compete against national suppliers and other storm protection systems Create synergies by maximizing efficiencies and scale including purchasing and logistics Broaden manufacturing footprint and capabilities "The acquisition of WinDoor aligns with our corporate growth strategy to acquire brands and products that generate revenue and leverage our core capabilities," said Jeff Jackson, PGTI's President, and Chief Operating Officer. "Rapid growth requires us to stay focused on what we know and leverage synergies between business units. This acquisition marks the second within the past 18 months that enables PGTI to deliver a richer and more comprehensive portfolio to our customers within the impact-resistant window and door market. The combination of the companies' strengths and cultures will deliver a richer product offering to our customers, extend more opportunities to our collective workforce and promote stronger returns for our shareholders." Subject to customary closing conditions, the transaction is expected to close in the middle of the first quarter of 2016. Deutsche Bank and Suntrust have committed to providing a long-term debt facility of $350 million ($255 pro forma debt, net of undrawn revolver and cash liquidity) which will be used to consummate the acquisition, repay existing indebtedness and for general corporate purposes. After the transaction closes: WinDoor, Inc. will continue to operate and manufacture products in Orlando, Florida. WinDoor, Inc. will remain a separate and distinct brand in the marketplace. PGTI will leverage best practices and synergies of [PGT Windows & Doors], CGI and WinDoor to provide incremental value to employees, customers, business partners, and stockholders. "I am extremely proud of the commitment and passion of our employees. For over 15 years, we have had a mission of craftsmanship, attention to detail and ultra-high performance. Becoming part of the PGT family allows that mission to continue for many more years to come," commented Frank Lukens, Founder of WinDoor. "We have found a culture and a management team that embody the best of the philosophies on which WinDoor was founded. This is such an exciting moment in the history of WinDoor, and I couldn't imagine a better pairing than WinDoor and PGT." PGT, Inc. will host a conference call on Wednesday, December 9th 2015, to discuss the acquisition as well as other business matters. The teleconference will begin at 2:30pm eastern time and will be hosted by Rod Hershberger, Chief Executive Officer, Jeff Jackson, President and Chief Operating Officer, and Brad West, Senior Vice President and Chief Financial Officer. Teleconference details will be published later today.