Investment firm acquires Ply Gem

Clayton, Dubilier & Rice (CD&R), a New York based investment firm, has acquired building products manufacturer Ply Gem Holdings.

Under terms of the deal, CD&R acquired all of the outstanding shares of Ply Gem common stock in a go-private transaction valued at approximately $2.4 billion. Ply Gem’s board of directors unanimously approved the agreement, which provides a payment of $21.64 per share in cash to all holders of Ply Gem common stock. The cash purchase price represents a premium of approximately 20% over Ply Gem’s closing stock price on January 30, 2018.

CD&R has also entered into an agreement to acquire Atrium Windows & Doors. The manufacturer will be combined with Ply Gem to create an exterior building products company with total revenue of more than $2.4 billion in 2017. Terms of the Atrium deal were not disclosed.

Both transactions are expected to close in the second quarter of 2018, CD&R said.

 The new Ply Gem will continue to be headquartered in Cary, N.C., with Ply Gem chairman and CEO Gary Robinette continuing to serve as lead executive. John Krenicki, a CD&R operating partner and former vice chairman of General Electric Company, will become lead director of the Ply Gem board, CD&R said.

For its third quarter 2017, Ply Gem reported net sales increased 6.5% to $564.7 million. The company also reported a net income of $27.5 million.

Ply Gem’s product lines include windows and patio doors, vinyl and aluminum siding and accessories, designer accents, cellular PVC trim and mouldings, vinyl fencing and railing, stone veneer, roofing, and gutterware products, used in both new construction and home repair and remodeling.