Exterior products manufacturer Ply Gem today announced it acquired Simonton Windows from Fortune Brands for $130 million. The transaction, which is expected to be approved and finalized in October, roughly totals 10 times Simonton's 2014 EBITDA, and equals more than a third of the window and door manufacturer's annual revenues of $300 million. Simonton will join Ply Gem's family of products but will not take the Ply Gem name.
In addition to the window company, Ply Gem also acquired from Fortune Brands the assets of SimEx, a vinyl and PVC foam extrusion manufacturing operation in West Virginia.
"The addition of Simonton Windows is in full alignment with our strategic growth plan and will better balance the mix of end markets that we serve while strengthening our core capabilities and contributing significantly to revenues in the future,” said Gary Robinette, Ply Gem’s president and CEO. “A prominent brand, Simonton has consistently been ranked a leader in the J.D. Powers Window and Patio Doors Satisfaction Study and is known for exceptional quality and service. Simonton Windows ideally complements our existing portfolio of window products."
Fortune Brands says it's committed to continue growing its door and trim segments with brands Therma-Tru and Fypon, and adds that it expects both to drive more growth in the future.
“Simonton’s strength in the replace and remodel segment of the market combined with Ply Gem’s strength in new construction are a natural combination,” said Chris Klein, CEO of Fortune Brands. “We also believe the sale of Simonton will allow us to more sharply focus on our Therma-Tru entry door and Fypon trim business and position us to further increase operating results in 2015.”