Door Manufacturers Masonite International and PGT Innovations Announce Merger

by Warren Seah

Shares of door manufacturers Masonite International and PGT Innovations had contrasting responses in the market following their announcement of a $3 billion cash-and-stock deal to merge.

Masonite International Stock Falls, PGT Innovations Stock Rises

In morning trading, shares of Masonite International dropped approximately 11% to $91.08. However, it is worth noting that the stock has still enjoyed a 13% increase this year, albeit lagging behind the S&P 500’s 23% rise during the same period.

On the other hand, shares of PGT Innovations saw a positive reaction, with a surge of over 9% to $39.48. PGT Innovations has experienced an impressive growth of nearly 120% this year.

Merger Details: Cash and Stock

Tampa-based Masonite International will acquire North Venice-based PGT Innovations in a deal worth $33.50 in cash and $7.50 in stock per share. The total value of $41 per share represents approximately a 24% premium to PGT’s average stock price over the past month. Both companies value the merger at around $3 billion.

Complementary Expertise

Masonite International specializes in manufacturing doors for various applications, catering to residential, commercial, and hospitality sectors such as hotels, hospitals, and offices. PGT Innovations, on the other hand, focuses on producing high-quality windows and patio doors.

You may also like

Leave a Comment