By: Bill Bregar
July 24, 2013
Plastic construction products maker Ply Gem Holdings Inc. moved to beef up its manufacturing in Canada before its initial May 23 initial public offering on the New York Stock Exchange.
Ply Gem bought Canadian window and door fabricator Geinow WindDoor Ltd. on April 9, disclosing the deal in a prospectus for the IPO. Gienow WinDoor runs a plant in Calgary Alberta, to serve western Canada. Ply Gem paid about C$21 million (US$20 million), according to the prospectus.
Ply Gem, a manufacturer of vinyl windows and doors, siding, fencing and cellular PVC trim and molding, set its IPO price at $21 per share. The stock, traded under the symbol PGEM, hit a high of $23.5 in mid-June before settling to about $20 in late July.
Ply Gem made another big Canadian acquisition, when it agreed to buy vinyl siding maker Mitten Inc. of Paris, Ontario, from Graham Partners Inc. That agreement was made May 6, the Ply Gem prospectus said. But it was not publicly announced until June 4.
Ply Gem paid about C$82 million (US$79 million) for Mitten, according to the prospectus.
In the prospectus, Ply Gem officials said they will use proceeds from the IPO to repurchase senior secured notes, repay an asset-based revolving line of credit and pay for the Mitten acquisition and other general corporate expenses.