Masonite International to acquire PGT Innovations in $3bn deal

Masonite International Corporation (“Masonite”), (NYSE: DOOR), a global leader in designing and manufacturing interior and exterior doors, and PGT Innovations, Inc. (“PGT Innovations”) (NYSE: PGTI), a prominent designer and manufacturer of patio doors and premium window solutions, have entered into a definitive agreement for a transformative acquisition. Masonite is set to acquire PGT Innovations in a deal valued at approximately $3.0 billion, combining cash and Masonite shares.

Terms of the Acquisition Agreement

Under the agreement’s terms, PGT Innovations shareholders will receive $41 for each share they own, comprising $33.50 in cash and $7.5 in Masonite common shares. This offer represents a 24% premium on PGT Innovations’ 30-day volume-weighted average share price. Post-transaction, Masonite shareholders will hold about 84% of the combined company, with PGT Innovations shareholders owning approximately 16%.

Strategic Benefits of the Acquisition

The acquisition enhances Masonite’s product range in adjacent categories and geographies, offering significant cross-selling opportunities and bolstering engineering and manufacturing capabilities. This move promises to enrich Masonite’s growth and financial profile, expected to yield considerable earnings per share accretion and synergies with minimal integration investment.

Leadership Perspectives on the Acquisition

Howard Heckes, President and CEO of Masonite, expressed excitement about this strategic step, emphasizing the combined company’s potential to offer comprehensive solutions for home interiors and exteriors. Jeffrey T. Jackson, President and CEO of PGT Innovations, remarked on the transaction’s milestone significance, highlighting the future growth and opportunities for both companies and their shareholders.

Masonite’s Growth Trajectory and Market Position

The transaction aligns with Masonite’s strategy to become a global leader in nutrition. The company has expanded its product offerings through acquisitions, including WILD Flavors, Eatem Foods, and Rodelle, and has strengthened its global presence. Masonite is committed to delivering innovative solutions in the wind and transportation markets, operating across multiple global locations.