| |
By Catherine Kavanaugh
STAFF REPORTER
Published: July 31, 2014 3:07 pm ET
Updated: July 31, 2014 3:15 pm ET
Image By: PGT Inc.
PGT Inc. is acquiring competitor CGI Windows & Doors Holdings Inc. for $111 million.
PGT Inc. is acquiring CGI Windows & Doors Holdings Inc. for $111 million as part of a plan to grow strategically by buying businesses with complimentary specialty products.
Both companies are based in Florida and make impact-resistant doors and windows from vinyl and aluminum profiles in addition to other products.
Headquartered in Venice, PGT wrapped up its best quarter since 2006 on June 28, when it posted sales of $81.6 million. That was an increase of $18.8 million compared to the second quarter of 2013.
Sales were driven by new construction and marketing initiatives focused on getting the company’s line of WinGard vinyl and aluminum products into the repair and remodel markets, according to President and COO Jeff Jackson. He expects the momentum to continue.
“July sales, in fact, were up approximately 17 percent over the prior year, and we are forecasting third quarter sales to be between $74 million and $77 million, compared to our third quarter of 2013 of $64.9 million,” Jackson said in a statement about second quarter results.
Founded in 1980, PGT was a pioneer in the U.S. impact-resistant window and door industry. The company employs about 1,700 people at its manufacturing, glass laminating and tempering plants in Florida. They make about a dozen product lines for customers on the East Coast, Gulf Coast, the Caribbean and international markets.
PGT’s sales of impact-resistant windows were up 33 percent in the second quarter over the prior year and represented 77 percent of total sales. With the CGI acquisition, PGT expects to strengthen its ability to compete against national suppliers and other storm protection systems, broaden its product offering, and increase its manufacturing footprint.
CGI will continue its Florida operations, where it employs about 200 people, and remain a separate brand in the marketplace.
This year, CGI added a line of vinyl windows called Targa to its three collections of aluminum windows and doors. Targa windows come with either an inch of insulated glass or 7/16ths of an inch of monolithic laminated glass.
Established in 1992, the Miami-based CGI claims to be the first manufacturer of hurricane-safe windows and doors to offer laminated glass that could meet stringent Miami-Dade County impact standards. A CGI video shows a nine-pound piece of 2-by-4 wood being shot at a window from a cannon at 50 feet per second. Upon impact, the projectile leaves spider-web like cracks in the glass and falls to the ground without penetrating the window. The structural integrity of the window remains intact and it passes the so-called missile test.
PGT’s acquisition of CGI is expected to close in September. Deutsche Bank and Keybanc NA will provide a long-term debt facility of $235 million to help finalize the deal, repay existing debt and for general corporate purposes.
PGT also is building a glass plant that is expected to be operational in the beginning of the fourth quarter. The new facility will address PGT’s internal capacity shortage for glass processing and reduce its reliance on outsourced finished glass, according to PGT CFO Brad West. | |
