PGT rebuffs latest $2.2 bln bid from Koch-backed Miter Brands -sources

PGT Innovations

13/12/2023 17:11

By David  Carnevali and Anirban Sen
       NEW YORK, Dec 13 (Reuters) - PGT Innovations Inc
 PGTI.N , a U.S. maker of vinyl and aluminum doors and windows,
has rejected a new bid worth about $2.2 billion from Miter
Brands, a competitor backed by Koch Industries, according to
people familiar with the matter. 
    PGT's board of directors has rebuffed an improved
$38-per-share all-cash offer from Miter, the sources said.
Reuters reported in October that Miter was working on putting
together a revised proposal after its $33-per-share bid was
turned down by PGT. 
    Miter's latest offer represents a premium of approximately
66% to where PGT shares were trading before the company adopted
a so-called poison pill in March to prevent any shareholder from
accumulating a stake of 10% or more for a year.
    The $1.9 billion market-cap company said it did this in
response to "a likely accumulation of PGT shares by a strategic
investor" that it did not identify. 
    Miter is working with lenders to further raise its offer for
PGT, the sources added.
    There is no certainty that the pursuit will end in a deal,
the sources said, requesting anonymity because the matter is
confidential.
    PGT declined to comment, while Miter Brands did not
immediately 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 and were up 4% in the most recent quarter on an
annual basis. 
    PGT rival 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 and Anirban Sen in New York;
Editing by Mark Porter)
 ((David.Carnevali@thomsonreuters.com;))