Ply-Gem Adding CertainTeed Window Business
In a move that gives the company’s window business national scope, Ply Gem Industries Inc. has entered into a definitive agreement to acquire the vinyl window business of CertainTeed Corp. CertainTeed operates three window and patio door fabrication facilities, located in Auburn, Wash., and Corona and Sacramento, Calif. It also extrudes and supplies vinyl window profiles to licensed window fabricators on the East Coast.
“This acquisition will enable us to capitalize on attractive market opportunities in the West, while strengthening our national presence in the windows and doors market,” says Gary E. Robinette, Ply Gem president and CEO. “This transaction will enable Ply Gem to provide our customers with window products for virtually any new construction or home improvement project in any area of the country. CertainTeed Window and Door products are extremely well respected in the marketplace and will complement Ply Gem’s existing window and door product offering.”
Based in Kearney, Mo., Ply Gem is a manufacturer of exterior building products that entered the window and door following its acquisition by Caxton-Iseman Capital Inc., a New York-based private equity firm. In 2004, it acquired Great Lakes Window, Walbridge, Ohio, and CWD Windows & Doors, based in Calgary, both previously owned by Nortek Corp. It then added MW Windows & Doors, based in Rocky Mount, Va., shortly thereafter. Last year, it added Alenco, a Texas-based manufacturer of aluminum and vinyl windows and doors. Other Ply Gem lines include Variform siding, Kroy vinyl decking and fencing and Alcoa Home Exterior products.
For 2006, Ply Gem reported overall sales of $1.05 billion. The company is a Window & Door 2007 Top 100 manufacturer reporting window and door sales between $500 million and $1 billion.
“The acquisition of CertainTeed’s vinyl window business with its great products and manufacturing footprint in the West presents Ply Gem with exciting new opportunities,” says Robert A. Ferris, a managing director of Caxton-Iseman. “Since we acquired Ply Gem in 2004, we have been very pleased by the company’s performance and growth trajectory. We continue to be impressed with the quality of the Ply Gem business and its leadership team as they continue to demonstrate strong financial performance against the challenging market conditions that currently exist in the residential housing market. We look forward to working with Ply Gem’s management team to continue building the business.”
The acquisition is expected to be financed through a combination of cash on hand and borrowings against Ply Gem’s $75 million revolving credit facility. Completion of the transaction, expected to occur in the third quarter of 2007, is subject to customary closing conditions.