Miter Brands has emerged victorious in the race to acquire PGT Innovations, a prominent door and window company. The deal was sealed at a purchase price of $42 per share in cash, totaling an enterprise value of $3.1 billion. This successful bid surpassed the offer made by Masonite International.
The agreed-upon price demonstrates a remarkable premium of 60% over PGT Innovation’s closing share price on October 9, prior to the disclosure of the acquisition proposal. As a result, PGT Innovation has terminated its previous merger agreement with Masonite International, cementing their commitment to the deal with Miter Brands.
The decision to opt for Miter’s offer was reached unanimously by the PGT Innovation board, who deemed it as a superior proposal compared to Masonite’s bid. Notably, Masonite forfeited their right to enhance the terms of their offer. Additionally, according to the terms of their merger agreement, Miter has paid an $84 million termination fee to Masonite.
The successful transaction between Miter Brands and PGT Innovation is anticipated to conclude by mid-year 2024. Once finalized, PGT Innovation will become a privately held subsidiary under Miter Brands, resulting in the delisting of its stock from the NYSE.
