PGT (PGTI) Concludes CGI Windows & Doors Acquisition

PGT Industries (PGTI) has completed its earlier announced acquisition of CGI Windows & Doors Holdings, Inc (CGI) for $111 million. The acquisition, which is expected to be accretive in 2015, is in line with PGT’s initiatives to grow strategically and at the same time contribute to earnings through targeted acquisitions of complementary specialty products.

PGT announced the deal in July when Deutsche Bank AG (DB) and Keybanc NA – unit of KeyCorp. (KEY) committed to provide a long-term debt facility of $235 million, which, together with cash on hand, to be used to fund the acquisition, repay existing indebtedness and for general corporate purposes.

The CGI acquisition will facilitate PGT to enhance its position in the growing impact-resistant window and door industry. The buyout will help to diversify and broaden PGT’s product portfolio as well as to expand its manufacturing footprint and provide synergies by maximizing efficiencies and scale.

The deal gives PGT a manufacturing presence in Miami and adds about 200 CGI employees to PGT’s workforce while strengthening its ability to compete against national suppliers and other storm protection systems.

On the other hand, CGI, a manufacturer of impact-resistant windows and doors in Florida's southeast markets, will remain a separate and distinct brand and will be responsible for providing incremental value to employees, customers, business partners and shareholders.

Additionally, Jeff Jackson, the President and Chief Operations Officer of PGT, will hold the same position in CGI after the completion of the transaction. Steven Dawson will continue with CGI in the expanded role of Vice President and General Manager, while Jorge Santaella will continue to act as Director of Manufacturing.

PGT remains optimistic about growth in new construction and the repair and remodeling markets, which will drive growth. PGT will also benefit from the recent acquisitions and new plant addition. The construction of a new glass facility will further strengthen its presence in Florida along with addressing internal capacity shortages and reduce its reliance on outsourced finished glass.

North Venice, FL-based PGT is a leading U.S. manufacturer and supplier of residential impact-resistant windows and doors. PGT's product line includes a variety of aluminum and vinyl windows and doors, which are ideal for new construction and replacement projects serving the residential, commercial, high-rise and institutional markets.

PGT currently has a Zacks Rank #2 (Buy). Another stock worth considering in the sector is Gibraltar Industries, Inc. (ROCK), carrying the same rank as PGT.

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