PGTI Buyout Turns to Saga as Board Weighs Another Deal

January 3rd, 2024 by Drew Vass, Executive Editor

A string of offers has turned a deal to acquire Venice, Fla.-based PGT Innovations Inc. (PGTI) into a saga, after an old suitor returned with a bigger check in hand. In October 2023, Miter Brands (MI Windows and Doors, Milgard Windows and Doors) tendered an offer for $1.9 billion, at $33 per share. When PGTI rejected the deal, Miter upped its offer to $2.2 billion in December, only to be turned down again, Reuters reported. Days later, a deal was announced with Masonite, in which the company agreed to purchase PGTI for $2.2 billion. But the deal is far from done. Tuesday, PGTI announced another “unsolicited proposal” from Miter, this time for $41.50 per share—50 cents higher than the current deal with Masonite. According to a press release, Miter’s latest offer is based in cash. Now, officials for PGTI say the company’s board is weighing the potential of a new deal.

“Consistent with the terms of the Masonite merger agreement, PGT Innovations’ board of directors, in consultation with its independent financial and legal advisors, will carefully review Miter Brands’ proposal to determine if it is reasonably likely to lead to a superior proposal,” a company press release states. The company will remain mum until the board has performed its review, the statement adds. Evercore, a New York-based global independent investment banking advisory firm is acting as exclusive financial advisor to PGTI.

In December, Russell Tiejema, Masonite’s executive vice president and chief financial officer, told [DWM] his company was busy assessing how to best integrate go-to-market strategies for a combination of Masonite-PGTI brands. Regarding the timing of the announcement, “We wanted to make sure everyone was on their toes going into the holidays,” Tiejema joked. Now the company’s board will have to decide whether to pivot on its heels.

When [DWM] reached out to PGTI and Miter Brands, both companies declined to comment.

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