PGT Innovations to Acquire Western Window Systems

Window & Door
July 24, 2018
Companies

PGT Innovations and Western Window Systems have entered into a definitive agreement under which PGT Innovations will acquire Western Window Systems from PWP Growth Equity, the middle market private equity group of Perella Weinberg Partners, for $360 million in cash, subject to customary adjustments. The transaction is expected to be completed in the third quarter of 2018 and, for the 12-month period ended Dec. 31, 2018, on a pro forma basis, the combined company is expected to generate approximately $706 million to $732 million in net sales.

The acquisition will combine the complementary strengths of Western Window Systems and PGT Innovations, according to a PGTi release, providing the opportunity to integrate Western Window Systems’ business into PGT Innovations’ portfolio. PGTi reports that the transaction positions it to focus on high-growth contemporary architectural designs and indoor/outdoor living spaces.

The transaction also supports PGT Innovations’ expansion outside of Florida. With the addition, PGTi expects to gain a strategic platform throughout the western United States, including California, Texas, Arizona, Nevada, Colorado, Oregon, Washington and Hawaii. By selling PGT Innovations’ existing brands alongside Western Window Systems’ products across an expanded geographic footprint, PGT Innovations expects to strengthen brand recognition and leadership.

“We are excited to add Western Window Systems to the PGT Innovations family of brands,” says Jeff Jackson, president and chief executive officer of PGT Innovations. “This transaction unites two highly complementary businesses to create a national leader in the premium window and door space, with an expanded product portfolio tailored to provide significant benefits for our collective customers.”

The combined company will reflect the management strengths and capabilities of both companies, according to PGTi. Upon completion of the transaction, Scott Gates will join PGT Innovations’ executive leadership team as senior vice president of PGT Innovations and president of Western Window Systems. The other members of Western Window Systems’ leadership team are expected to maintain leadership roles at the combined company.

“We welcome Western Window Systems’ talented 330 employees into the PGT Innovations family and look forward to working with them to build on each company’s record of growth and success,” Jackson comments.

Following the close of the transaction, Western Window Systems will become a wholly owned subsidiary of PGT Innovations. Western Window Systems will continue to operate and manufacture products as a separate and distinct brand under the PGT Innovations house of brands. PGT Innovations will retain its headquarters in Florida, and the combined company will maintain manufacturing operations in Arizona.

“PGT Innovations is an organization whose values and culture align with our own,” says Scott Gates, president and chief executive officer of Western Window Systems. “PGT Innovations’ enviable understanding of, and sales into, the repair and remodel market provides a great opportunity for collaboration to service our customers’ total business needs and the needs of new dealer customers who have a focused presence in that segment.”

In the transaction conference call following the news release, Jackson and Gates noted that PGT Innovations has demonstrated an ability to build long-term relationships with dealers and distributors, and Western Window Systems has developed strong end-user loyalty to generate pull through product demand. Combining these two strategies is expected to increase overall sales and customer loyalty.

PGT Innovations intends to leverage its strong network of dealers and experience in the repair and remodel segment to increase Western Window Systems’ working relationships with architects, custom home builders and designers, and help the dealers in its network become even more productive.