PGT Innovations to Acquire Majority Ownership Stake in Eco Window SystemsJanuary 11th, 2021 by Editor
PGT Innovations, Inc., announced that it has signed a definitive agreement to acquire a 75% ownership stake in Eco Window Systems and its related companies for a purchase price of $108 million, subject to closing adjustments. Eco is manufacturer and installer of aluminum, impact-resistant windows and doors serving the South Florida region.
“Eco has strong brand recognition in the residential market and its dealer network is highly complementary to our existing footprint with minimal dealer overlap. We are excited about continuing our longstanding relationship with Eco, which has been both a supplier and customer to us over the years. We believe this combination will accelerate our growth and increase our ability to serve the expanding southern Florida market,” said Jeff Jackson, president and CEO of PGT Innovations. He further explained that the “transaction results in vertically integrated manufacturing capabilities, which strengthens our supply chain for glass and is expected to enable faster production.”
That Eco locally produces 100% of its own glass is a benefit for PGT, as is Eco’s growing commercial business, which PGT says complements its own product lines. Additionally, the companies share values about “maintaining focus on the customers, who are at the center of business, and delivering customer-centric innovation.”
Having a similar corporate culture, PGT says, means that long-standing relationships between management teams are expected to facilitate a seamless integration.
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. PGT Innovations expects the transaction to be completed by January 31, 2021, subject to customary closing conditions. The waiting period under the Hart Scott Rodino Act expired on December 9, 2020.
PGT Innovations retains 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.