PGT Innovations buys majority share of Eco Window Systems
Window and door manufacturer PGT Innovations, Inc. (PGTI) has signed a definitive agreement to acquire a 75% ownership stake in Eco Window Systems (Eco) and its related companies.
PGTI reported that it is paying $108 million for the 75% share of Eco.
Based in Miami, Eco is a manufacturer and installer of aluminum, impact-resistant windows and doors serving the south Florida region. Eco operates three manufacturing facilities including glass production.
In a statement, PGTI said that Eco complements PGT Innovations’ product lines, particularly in the Florida multi-family market where continued growth is expected. PGTI is based in North Venice, Fla.
“The addition of Eco to our corporate family is expected to accomplish several objectives within our strategic framework for profitable growth,” said Jeff Jackson, president and CEO of PGT Innovations. “This transaction results in vertically integrated manufacturing capabilities, which strengthens our supply chain for glass and is expected to enable faster production. Further, we will have access to an additional portfolio of aluminum impact-resistant products that we believe will enhance our presence in the multifamily and commercial channels.
The purchase price of $108 million is comprised of $100 million cash and $8 million of PGT Innovations common stock for a 75% ownership stake in Eco.
“Eco has strong brand recognition in the residential market and its dealer network is highly complementary to our existing footprint with minimal dealer overlap,” Jackson added. We are excited about continuing our longstanding relationship with Eco, which has been both a supplier and customer to us over the years.”
PGTI said that it expects the transaction to be completed by Jan. 31
Additional terms of the deal call for PGTI to retain an exclusive option to buy the remaining 25% of Eco beginning on the second anniversary of the closing of its purchase of the 75% ownership stake in Eco.
During a limited window after the third anniversary of the closing date, Eco has the right to require PGT Innovations to purchase the remaining 25% interest of ECO if it has not done so by that date.