PGT to Acquire CGI Windows & Doors
July 29, 2014
PGT Inc. will join forces with another major player in the impact-resistant window and door market, as it has entered into a definitive agreement with CGI Windows & Doors Holdings Inc., whereby 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 company reports. The acquisition is expected to be complete by 2015.
"The acquisition of CGI Windows & Doors is consistent with our stated growth plan to acquire revenue generating products that leverage our core capabilities," says Rod Hershberger, chairman of the Board and Chief Executive Officer of PGT. "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."
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.
"A very exciting time for both companies, as this strategic and complementary combination will bring significant benefits to our collective customers," says Steve Dawson, executive vice president of sales at CGI. "Our customers can expect to benefit from expanded product portfolios and increased manufacturing capabilities."
After the transaction closes:
- CGI will continue to operate and manufacture products in Miami, Fla.
- 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.