PGT Innovations to Acquire 75% Ownership Stake in Eco Window Systems
PGT Innovations, Inc. (NYSE: PGTI), a national leader in premium windows and doors, including impact-resistant products and products designed to unify indoor/outdoor living spaces, today announced it has signed a definitive agreement to acquire a 75% ownership stake in Eco Window Systems and its related companies (collectively, “Eco”) for a purchase price of $108 million, subject to closing adjustments. Eco is a leading manufacturer and installer of aluminum, impact-resistant windows and doors serving the South Florida region.
“The addition of Eco to our corporate family is expected to accomplish several objectives within our strategic framework for profitable growth,” said Jeff Jackson, President and Chief Executive Officer of PGT Innovations. “This transaction results in vertically integrated manufacturing capabilities, which strengthens our supply chain for glass and is expected to enable faster production. Further, we will have access to an additional portfolio of aluminum impact resistant products that we believe will enhance our presence in the multifamily and commercial channels. In addition, we will gain relationships with new dealers whom we do not currently serve.”
“Eco has strong brand recognition in the residential market and its dealer network is highly complementary to our existing footprint with minimal dealer overlap. We are excited about continuing our longstanding relationship with Eco, which has been both a supplier and customer to us over the years. We believe this combination will accelerate our growth and increase our ability to serve the expanding southern Florida market,” added Mr. Jackson.
Expected Strategic and Financial Benefits
Strengthens supply chain by adding glass production capacity
- Eco locally produces 100% of its own glass
- Vertical integration of glass production expected to enable incremental production capacity and greater visibility into and control of supply chain
Expands and diversifies product lines in high-growth commercial market
- Eco’s growing commercial business complements PGT Innovations’ product lines
- Florida multi-family market is expected to continue to grow, supported by long-term secular trends
Extends residential market footprint with minimal dealer overlap
- Eco services the residential market primarily in southern Florida, through dealers who generally are not current customers of PGT Innovations
- Additional aluminum product lines complement our existing product portfolio
Combines similar cultures across both organizations