Harrisburg, Pa.-based Miter Brands, a vinyl and aluminum window and door manufacturer, has purchased Venice, Fla.-based competitor PGT Innovations Inc. (PGTI) in a deal valued at $3.1 billion.
Formed by the 2019 combination of MI Windows and Doors and Milgard, Miter Brands was attracted to PGTI's complementary product mix and geographic presence, according to Miter Brands President and CEO Matt DeSoto.
"The combined company will continue its long-held commitment to innovation, service, and high-quality window and door products as we accelerate our growth trajectory," DeSoto said in a news release.
PGTI generated record sales of $1.49 billion in 2022 for its vinyl and aluminum doors and windows, produced by about 5,500 employees at eight manufacturing sites.
It has multiple locations in Florida — in Venice, Hialeah, Miami, Tampa, Medley and Fort Myers — along with sites in Phoenix, Salt Lake City and Clovis, Calif.
Miter Brands will acquire all outstanding shares of PGTI for $42 per share in cash, or an enterprise value of about $3.1 billion.
The purchase price represents a premium of 60 percent over PGTI's closing share price on October 9, 2023, which was the last trading day prior to the public disclosure of a proposal for the acquisition of PGTI.
PGTI rebuffed Miter's first bid, worth about $2.2 billion, according to a Dec. 13 Reuters story.
It also had been in talks with Masonite International Corp. but terminated a proposed merger agreement.
The approved sale to Miter will be financed in part by an equity investment from Koch Equity Development LLC, the principal investment and acquisition arm of Koch Industries Inc., and a current investor in Miter.
This is the third equity investment since 2019 to build the window and door brand, according to Richard Hunt, managing director at Koch Equity Development.
In December 2020, private equity firm Riverside Co. sold vinyl window maker Sunrise Windows & Doors to MI Windows and Doors for an undisclosed price.
Miter Brands company roots go back to 1947 with windows and doors produced for the new construction and replacement markets at more than 10 U.S. facilities, the news release says.