PGT completed purchase of industry competitor CGI Windows & Doors Holdings.
PGT Inc., an impact-resistant window and door maker based in Venice, Florida, has completed its 111 USD million purchase of industry competitor CGI Windows & Doors Holdings Inc. of Miami, Florida. The sale is the first major acquisition in PGT’s 34-year history and one of the region’s largest transactions since the recession. PGT said the purchase expands its product line and strengthens its ability to compete against national suppliers.
CGI was put up for sale by its owner, Cortec Group Fund IV, a private equity fund in New York. PGT officials said the company generates 40 million USD to 45 million USD in yearly sales. CGI will continue manufacturing and selling its own brand of storm-resistant products and operate as a PGT subsidiary.
PGT announced the deal in late July and said the purchase is consistent with its growth plans, which include “targeted acquisitions” of complementary products. “The capabilities and assets the talented CGI team brings will allow us to advance our collective leadership position in the industry,” said Jeff Jackson, PGT’s president and chief operating officer.
Jackson will become president and COO of CGI. Steven Dawson, former CGI executive vice president of sales, will become vice president and general manager. Jorge Santaella will continue working as director of manufacturing.
The 1,700-employee PGT has rebounded from the recession and sharp downturn in the Florida housing market, when the publicly traded company was forced to close plants, lay off workers and retreat from an expansion into North Carolina. The company reported $81.6 million in sales in the second quarter, its highest level since 2006. CGI is expected to add to earnings in 2015.
PGT is also investing 14 million USD to build a 96,000 square foot plant that will be equipped for glass cutting, tempering and laminating. It is expected to open in the fourth quarter.
Additionally, PGT announced a 235 million USD credit agreement with Deutsche Bank AG and Keybanc NA that paid for the CGI purchase, which also repaid existing debt and will be used for general corporate purposes.