Cary-based Ply Gem acquiring window business for $130M
08/20/2014 11:55 AM
08/20/2014 11:56 AM
Ply Gem Holdings announced Wednesday that it is acquiring Simonton Windows, a vinyl window and patio door manufacturer, for $130 million.
A Ply Gem subsidiary, Ply Gem Industries, is buying the business from Fortune Brands Home & Security. Ply Gem is also acquiring all the assets of SimEx, a vinyl and PVC foam extrusion manufacturing operation in West Virginia.
Cary-based Ply Gem produces vinyl siding, windows and doors and other products for home exteriors.
“The addition of Simonton Windows is in full alignment with our strategic growth plan and will better balance the mix of end markets that we serve while strengthening our core capabilities and contributing significantly to revenues in the future,” said Gary Robinette, Ply Gem’s CEO, in a statement.
Simonton, which is based in Columbus, Ohio, has annual revenues of more than $300 million. In addition to West Virginia, it also has manufacturing facilities in Illinois and California.
Ply Gem plans to run Simonton as a stand-alone business, similar to its siding and window group. The deal is expected to close in October pending regulatory approval.
Ply Gem is financing the deal with cash and new debt.
Earlier this month, Ply Gem reported that net sales increased 11 percent in the second quarter $409.2 million. That was above the $406 million that was the consensus among analysts who cover the company, according to Bloomberg.
Ply Gem shares closed Wednesday at $10.09, up 20 cents. The stock is down 44 percent this year.
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