Ply Gem to Acquire Simonton Windows

August 20th, 2014 by Editor

Fortune Brands Home & Security Inc. has signed an agreement to sell Simonton Windows to Ply Gem Holdings Inc.

According to the announcement, the Simonton transaction is valued at approximately $130 million, or roughly 10 times the 2014 earnings before interest, taxes, depreciation and amortization. The transaction’s closing is subject to regulatory approval and is expected to occur in October.

“Simonton’s strength in the replace and remodel segment of the market combined with Ply Gem’s strength in new construction are a natural combination,” says Chris Klein, chief executive officer of Fortune Brands. “Together the companies can now offer a more comprehensive product portfolio, benefit from an expanded distribution network and have a more efficient national manufacturing platform. We also believe the sale of Simonton will allow us to more sharply focus on our Therma-Tru entry door and Fypon trim business and position us to further increase operating results in 2015.”

Fortune Brands will continue to own its door segment, Therma-Tru, which is focused on the fiberglass segment within the door industry. As of press time, Ply Gem had not responded to requests for comment.

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