Masonite International Corporation is acquiring PGT Innovations, a manufacturer of patio door and windsor solutions along with impact-rated glass applications. Masonite will complete the purchase through a combination of cash and Masonite shares with a total transaction value of $3 billion.

The acquisition calls for PGT Innovations shareholders to receive $41 per PGT Innovations share, comprised of $33.50 in cash and $7.50 in common shares of Masonite.

Upon completion of the transaction, Masonite shareholders will own approximately 84% of the combined company, with PGT Innovations shareholders owning approximately 16%.

“The acquisition of PGT Innovations accelerates our strategy and is an exciting and transformational step in the nearly 100-year history of Masonite,” said Howard Heckes, president and CEO of Masonite. “The combined business will be well positioned to provide homeowners with differentiated solutions across both the interior and exterior openings of the home, while significantly expanding our geographic presence and growth opportunities.”

According to a news release, the agreement between Masonite and PGT Innovations will close in the middle of 2024. Heckes will continue to serve as the CEO of Masonite. After the deal closes, Jeff Jackson, CEO of PGT Innovations, and one additional PGT Innovations director will join the Masonite board of directors.

“Today’s announcement is a significant milestone for PGT Innovations, and a testament to the talent and dedication of our team members around the country,” Jackson said. “This transaction will provide significant near-term value to PGT Innovations’ shareholders, while also enabling them to participate in the long-term upside opportunity of the combined company.”

The boards of both Masonite and PGT Innovations have each unanimously approved the transaction.