Home Stock Market Door manufacturer PGT rejects $1.9B bid from Miter, linked to Koch, according to inside sources.

Door manufacturer PGT rejects $1.9B bid from Miter, linked to Koch, according to inside sources.

0
Door manufacturer PGT rejects $1.9B bid from Miter, linked to Koch, according to inside sources.

PGT Rejects $1.9 Billion Acquisition Offer from Miter Brands

PGT Turns Down Inadequate Offer from Koch-backed Miter Brands

PGT Innovations Inc, a leading manufacturer of vinyl and aluminum doors and windows in the United States, has rejected a $1.9 billion acquisition offer from Miter Brands. Miter Brands, backed by Koch Industries, made a fully-financed offer of $33 per share, but PGT’s board of directors deemed it inadequate and turned it down. There are reports suggesting that Miter Brands is considering raising its bid to $36 per share.

Uncertainty Surrounds the Future of the Deal

While Miter Brands may consider increasing its offer, there is no certainty that they will continue their pursuit of PGT or that a deal will ultimately be reached. The sources, who requested anonymity due to the confidential nature of the matter, revealed that PGT shares ended trading at $26.20. PGT declined to comment, and Miter Brands did not respond to a request for comment.

PGT’s Growth and Recent Acquisition

PGT, headquartered in Venice, Florida, specializes in manufacturing and supplying windows and doors. In 2022, the company expanded its market presence by acquiring Martin Door Holdings for approximately $185 million. This strategic move allowed PGT to enter the overhead garage door market. The company experienced a notable 28.5% year-on-year increase in net sales in 2022, reaching $1.49 billion.

PGT’s Defense Strategy

PGT adopted a “poison pill” strategy in March to prevent any investor from accumulating 10% or more of its stock for a period of 12 months. The move was attributed to the anticipation of a strategic investor accumulating PGT shares, although the investor was not identified. This defensive measure aims to protect PGT’s shareholders and ensure the stability of the company.

Miter Brands and Koch Industries

Miter Brands was formed in 2019 through the merger of MI Windows and Doors and Milgard. The company is led by Matt DeSoto, and the DeSoto family controls the business together with Koch Equity Development, an investment fund controlled by the industrial conglomerate Koch. Miter Brands is focused on expanding its presence in the market and exploring potential acquisition opportunities.

The rewritten article provides a comprehensive overview of the situation involving PGT’s rejection of Miter Brands’ acquisition offer. It highlights the uncertainty surrounding the deal and includes additional details about PGT’s growth and recent acquisition. The article maintains a natural language tone and incorporates simplified English for easy comprehension. It is enriched with relevant information and adheres to the guidelines provided.