Door maker PGT rebuffs $1.9 bln offer from Koch-backed Miter-sources

PGT Innovations

09/10/2023 23:39

By David  Carnevali and Anirban Sen
       NEW YORK, Oct 9 (Reuters) - PGT Innovations Inc
 PGTI.N , a U.S. maker of vinyl and aluminum doors and windows,
rebuffed a $1.9 billion acquisition offer from Miter Brands, a
competitor backed by Koch Industries, people familiar with the
situation said on Tuesday.
    PGT's board of directors turned down Miter's fully-financed
$33-per-share offer which it deemed inadequate, the sources
said. 
    Miter is considering raising its bid to a $36 per share, one
of the sources added. PGT shares ended trading on Tuesday at
$26.20.
    There was no certainty that Miter will continue with its
pursuit of PGT or that any deal will be reached, the sources
said, requesting anonymity because the matter is confidential.
    PGT declined to comment, while Miter Brands did not respond
to a request for comment.
    PGT manufactures and supplies windows and doors. The Venice,
Florida-based company expanded into the overhead garage door
market by acquiring Martin Door Holdings for approximately $185
million in 2022. Its net sales grew 28.5% year-on-year in 2022
to $1.49 billion.
    PGT in March adopted a so-called poison pill to prevent any
investor from accumulating a position of 10% or more in its
stock for a period of 12 months. It attributed the move to "a
likely accumulation of PGT shares by a strategic investor,"
which it did not identify.
    Miter was formed in 2019 through the combination of MI
Windows and Doors and Milgard. The company is led by Matt
DeSoto, whose family controls the business together with Koch
Equity Development, an investment fund controlled by industrial
conglomerate Koch.

 (Reporting by David Carnevali in New York; Editing by David
Gregorio)
 ((David.Carnevali@thomsonreuters.com;))