PGT Innovations (PGTI) Gets Miter's Unsolicited Bid, Stock Gains
In a surprising turn of events, PGT Innovations, Inc. PGTI, a leading provider of premium windows and doors, has received an unsolicited proposal from Miter Brands to acquire all outstanding shares for $41.50 per share in cash. This comes on the heels of PGT Innovations' agreement with Masonite International Corp. DOOR for $41.00 per share in a combination of cash and Masonite stock.
Shares of PGT Innovations lost 1.2% during the trading session on Jan 2 but gained 4.7% in the after-hour trading session on the same day.
The Masonite deal, announced on Dec 18, 2023, represented a significant 56.5% premium over the closing price per share of PGTI common stock on Oct 9, 2023. PGT Innovations' board of directors, guided by independent financial and legal advisors, will now thoroughly assess Miter Brands' proposal to determine if it could potentially lead to a superior offer.
As the review unfolds, PGT Innovations has urged its shareholders to refrain from taking any immediate action. The company remains committed to prioritizing shareholder value in this dynamic situation.
Evercore is serving as the exclusive financial advisor to PGT Innovations, with legal counsel provided by Davis Polk & Wardwell LLP. The developments underscore the strategic importance of PGT Innovations in the market, with multiple entities recognizing its value. Shareholders and industry observers alike will be closely watching as this unfolding narrative shapes the future trajectory of PGT Innovations.
PGT Innovations made a strategic move into the overhead garage door market with the acquisition of Martin Door Holdings for approximately $185 million in 2022. In contrast, Miter Brands was established in 2019 through the merger of MI Windows and Doors and Milgard.
Share Price Performance
In the past year, PGTI has gained 122.9%, comparing favorably with the Building Products - Miscellaneous industry’s 53.1% rise.
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PGT Innovation currently carries a Zacks Rank #2 (Buy). This stock has seen an upward estimate revision of 2024 earnings to $2.44 per share from $2.41 over the past 60 days.
The company’s earnings topped the consensus estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 8.4%. It carries an impressive VGM Score of A.
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