Market Overview

Ply Gem to Acquire Silver Line Division from Andersen Corporation

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Further strengthens leading position in vinyl windows and patio
doors across both new construction and home improvement segments

Ply Gem, a leading North American manufacturer of exterior building
products, has entered into an agreement with Andersen Corporation to
acquire the Silver Line vinyl window and patio door division, which had
2017 annual revenues of more than $440 million. The transaction, valued
at approximately $190 million, aligns with Ply Gem's strategy of driving
growth in revenue and earnings in part through targeted acquisitions of
highly complementary businesses.

As part of the deal, Ply Gem will acquire the portfolio of products sold
under the Silver Line and American Craftsman brands, four Silver Line
manufacturing plants and the associated distribution and support
services. Approximately 4,000 employees at these locations and functions
will transition to Ply Gem with the business. The transaction further
strengthens the Ply Gem portfolio by adding two highly respected brands
and is expected to:

  • Create a more comprehensive and balanced portfolio across the repair
    and remodeling (R&R) and new construction segments
  • Establish a stronger national residential windows platform with
    manufacturing scale and channel distribution advantages to better
    serve both R&R and new construction customers
  • Generate opportunities for operational synergies to enhance customer
    service and optimize future profitability and growth

"This transaction is in full alignment with our strategic growth plan,"
said Gary E. Robinette, Ply Gem's Chairman and CEO. "The addition of the
Silver Line business will better balance the mix of end markets that we
serve, strengthen our core capabilities and contribute significantly to
revenues and earnings. We are confident this will help us achieve
synergies and competitive advantages that drive top line sales and
enhanced customer value."

"We are excited to welcome the Silver Line associates to the Ply Gem
Family," Robinette added. "The Silver Line and American Craftsman brands
have been trusted by customers and consumers for over 60 years and its
associates are a perfect fit for the Ply Gem culture."

"Andersen is proud of the Silver Line and American Craftsman brands and
the talented employees who have built them during the past 12 years
under Andersen's ownership. We believe they will continue to thrive
under Ply Gem's stewardship, as Andersen sharpens its focus on our
Andersen, Renewal by Andersen and specialty brands," said Jay Lund,
Chairman and CEO Andersen Corporation.

The deal, which is expected to close early in the fourth quarter of 2018
pending regulatory review and approval, will be funded through a
combination of cash on hand and incremental borrowings. After giving
effect to anticipated cost savings and synergies, the acquisition is
expected to be credit accretive.

About Ply Gem

Ply Gem, headquartered in Cary, N.C., is a leading manufacturer of
exterior building products in North America. Number one in vinyl siding
and in vinyl and aluminum windows, Ply Gem produces a comprehensive
product line of windows and patio doors, vinyl and aluminum siding and
accessories, designer accents, cellular PVC trim and mouldings, vinyl
fencing and railing, stone veneer and gutterware, used in both new
construction and home repair and remodeling in the United States and
Canada. Visit www.plygem.com
for more information.

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