Shares of PGT Innovations Inc. (NASDAQ: PGTI) surged 8.1% in premarket trading on Monday as the company announced a cash and stock acquisition deal with Masonite International Corp. (NYSE: DOOR) valued at $3 billion. This record-breaking deal marks an exciting opportunity for the maker of windows, doors, and garage doors to further its growth.
The Deal
According to the agreement, PGT shareholders will receive $41 for each PGT share they own. This includes $33.50 per share in cash and $7.50 per share worth of Masonite stock. Masonite shares experienced a 2.0% decline prior to market opening. The transaction is set to close in the middle of 2024, and it is anticipated to enhance Masonite’s earnings in the first year, while generating $100 million in annual synergies.
Expanding Horizons
Masonite Chief Executive, Howard Heckes, expressed his enthusiasm about the acquisition, stating, “The combined business will be well positioned to provide homeowners with differentiated solutions across both the interior and exterior openings of the home, while significantly expanding our geographic presence and growth opportunities.”
Steadfast Progress
Despite a challenging market environment, PGT’s stock had already gained significant momentum prior to this acquisition announcement. Climbing an impressive 101% year-to-date through Friday, the company’s stock closed at a record $36.60 on December 14th. Meanwhile, Masonite’s stock saw a solid increase of 26.5%, and the S&P 500 index rose by 22.9%.
This strategic move by PGT Innovations Inc., in partnership with Masonite International Corp., is poised to fuel further success for both companies as they enter into an exciting new chapter in the industry.
