"PGT Rebuffs Latest $2.2B Bid From Koch-Backed Miter Brands" - Reuters

Author: Benzinga Newsdesk | December 13, 2023 01:14pm

PGT Innovations Inc , a U.S. maker of vinyl and aluminum doors and windows, has rejected a new bid worth about $2.2 billion from Miter Brands, a competitor backed by Koch Industries, according to people familiar with the matter.

PGT's board of directors has rebuffed an improved $38-per-share all-cash offer from Miter, the sources said. Reuters reported in October that Miter was working on putting together a revised proposal after its $33-per-share bid was turned down by PGT.

Miter's latest offer represents a premium of approximately 66% to where PGT shares were trading before the company adopted a so-called poison pill in March to prevent any shareholder from accumulating a stake of 10% or more for a year.

The $1.9 billion market-cap company said it did this in response to "a likely accumulation of PGT shares by a strategic investor" that it did not identify.

Miter is working with lenders to further raise its offer for PGT, the sources added.

There is no certainty that the pursuit will end in a deal, the sources said, requesting anonymity because the matter is confidential.

PGT declined to comment, while Miter Brands did not immediately respond to a request for comment.

PGT manufactures and supplies windows and doors. The Venice, Florida-based company expanded into the overhead garage door market by acquiring Martin Door Holdings for approximately $185 million in 2022. Its net sales grew 28.5% year on year in 2022 to $1.49 billion and were up 4% in the most recent quarter on an annual basis.

PGT rival Miter was formed in 2019 through the combination of MI Windows and Doors and Milgard. The company is led by Matt DeSoto, whose family controls the business together with Koch Equity Development, an investment fund controlled by industrial conglomerate Koch.

Posted In: PGTI