PGT Innovations, the South Florida-based company best known for producing impact-resistant windows and doors, announced it will acquire Western Window Systems, an Arizona firm that makes glass walls, windows, and indoor/outdoor patio door systems.
PGT will spend $360 million in cash to acquire Western Window Systems from Perella Weinberg Partners, the company said in a July 24 news release. Together, the companies will have annual net sales of $706 to $732 million and adusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $135 million to $148 million, the press release said. That works out to an adjusted EBITDA margin of 19% to 20%.
Following the deal, Phoenix-based Western Window Systems will become a wholly owned subsidiary of PGT and will operate as a separate and distinct brand.
"This transaction supports PGT Innovations’ expansion outside of Florida, an important component of its strategic roadmap for growth," PGT said in a news release. "With the addition of Western Window Systems, PGT Innovations expects to gain a strategic platform in important and growing geographies throughout the western United States, including California, Texas, Arizona, Nevada, Colorado, Oregon, Washington and Hawaii." In all, Western Window Systems serves 40 states.
Western Window Systems expects net sales of $126 million to $132 million this year. Its adjusted EBITDA margin should be 23% and 24%, PGT said. Meanwhile, PGT announced July 24 its net sales grew 23% in the second-quarter from the year-earlier period to hit $169 million.
PGT president CEO Jeff Jackson said the transaction "unites two highly complementary businesses to create a national leader in the premium window and door space." Scott Gates, president and CEO of Western Window Systems, noted PGT does well in the repair and remodel market. Western Window Systems, by contrast, owes much of its growth to new home construction.
