Masonite Door Maker Buys PGT Innovations for $3B

Masonite International, a well-known designer and manufacturer of interior and exterior doors for both residential and commercial, announced it has acquired PGT Innovations, the market leader for high-performance windows and doors. The company said this is a transformative acquisition as the deal creates a merged organization with more than $4 billion in combined revenue.

Moreover, Masonite’s acquisition of PGT Innovations will also form a door and window solutions firm expected to take the lead in the market. This is because their integrated expertise in the field will indeed generate better services and technology to offer high-performing products.

Value and Funding of the Deal

As per Reuters, Masonite International confirmed its acquisition of PGT Innovations on Monday, Dec. 18. The company said it will invest $3 billion in the deal, and shareholders of PGT are set to receive $41 for every share they hold.

The amount is paid in the form of $33.50 in cash and $7.50 in common shares of Masonite. This offer equals a 13.6% premium to the previous closing price of the premium windows and doors supplier headquartered in Florida. Masonite International plans to fund the cash it needs for the deal in several ways, including cash on hand, borrowings under various credit services, and fresh debt or equity financing.

Strategy to Accelerate Business Growth

Masonite explained that its takeover of PGT Innovation will help the company in its bid to expand its business. It also said that it shares the same commitment with PGT: delivering premium products and innovation to customers.

“The acquisition of PGT Innovations accelerates our strategy and is an exciting and transformational step in the nearly 100-year history of Masonite,” Masonite’s president and chief executive officer, Howard Heckes, said in a press release. “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.”

PGT Innovation’s president and CEO, Jeffrey T. Jackson, also commented, “Today’s announcement is a significant milestone for PGT Innovations and a testament to the talent and dedication of our team members around the country. This transaction will provide significant near-term value to PGT Innovations’ shareholders, while also enabling them to participate in the long-term upside opportunity of the combined company.”

Photo by: Masonite Website