Clayton, Dublier & Rice (CD&R) will acquire Ply Gem Holdings Inc. as well as Atrium Windows & Doors and then combine the two building material companies into a giant with annual revenues topping $2.4 billion, Ply Gem and CD&R announced today.
The private equity firm will pay $21.64 in cash to all holders of Ply Gem stock in a go-private transaction. The per-share price is about 20% above Ply Gem's close on Jan. 30, a news release from Ply Gem and CD&R noted. The Ply Gem transaction was valued at $2.4 billion. Ply Gem's revenues for the four quarters through 3Q17 totaled roughly $2 billion.
Terms weren't disclosed for CD&R's simultaneously announced deal for Atrium. Once both deals close in the second quarter, CD&R funds will own approximately 70% of the new, privately held company, while Atrium shareholders--which include funds managed by Golden Gate Capital--will hold approximately 30%, the press release said. The new company will have total revenues of $2.4 billion, the news release said. Given Ply Gem's sales for the past four quarters, this suggests that Atrium's annual sales are near $400 million.
Ply Gem Chairman and CEO Gary Robinette will keep those jobs, while CD&R Operating Partner John Krenicki will become Lead Director of the board.
“The Ply Gem Board’s unanimous approval of this transaction is based on the conviction that it delivers superior value to shareholders,” Robinette said in the news releasse. “The strategic and operational excellence of CD&R and Golden Gate will help strengthen the long-term growth of the company. This support, along with the expanded business and product portfolio of the new combined company, will establish a stronger window platform with manufacturing scale and channel distribution advantages for customers. Together with the talented Atrium team, we look forward to providing exceptional value and service to all of our customers and rewarding career opportunities for our associates.”
“We are excited to combine with Ply Gem and look forward to the synergies that will be achieved through an enhanced product breadth and stronger North American platform, which will allow us to drive topline growth and customer value,” said Ron Cauchi, Atrium's CEO.