Ply Gem to Acquire Simonton Windows
August 20, 2014
Fortune Brands Home & Security Inc., parent company of Simonton, Fypon and Therma-Tru, has signed an agreement to sell Simonton Windows to Ply Gem Holdings Inc., according to an FBHS press release issued today. The Simonton transaction is valued at approximately $130 million, or roughly 10 times 2014 EBITDA. The transaction’s closing is subject to regulatory approval and is expected to occur in October. The Simonton sale is expected to reduce Fortune Brands’ second half 2014 earnings per share from continuing operations by 2 to 4 cents.
“Simonton’s strength in the replace and remodel segment of the market combined with Ply Gem’s strength in new construction are a natural combination,” says Chris Klein, chief executive officer, Fortune Brands. “Together the companies can now offer a more comprehensive product portfolio, benefit from an expanded distribution network and have a more efficient national manufacturing platform. We also believe the sale of Simonton will allow us to more sharply focus on our Therma-Tru entry door and Fypon trim business and position us to further increase operating results in 2015.”
According to the release, Fortune Brands remains committed to owning and growing its door segment with its Therma-Tru entry door business, which is expected to continue to drive profitable growth.